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District budget outlook: first interim shows tight cash, $272,000 projected deficit
Summary
The district's 1st interim financial report showed December cash of $464,000 and a projected deficit of $272,000 driven by enrollment declines, reduced restricted funds and increasing special education costs; staff said the district can self-certify as positive through 2027 only because of adjustments and one-time funds.
District business staff presented the 1st interim report and multiyear projection, warning the board that cash on hand is very tight and that projected out-year gaps require careful attention. "We are short cash," the presenter said while showing a December cash balance of $464,000 and noting that the district's June cash balance of $2,700,000 was about $500,000 less than the previous year.
The presenter detailed drivers of the shortfall: enrollment dropped from approximately 813 at budget adoption to roughly 770 (later noted at 758), lowering ADA and state revenue; some one-time grants used to cover raises and positions have expired; and special education costs (~$1.9 million) far outstrip special education revenue (~$300,000), forcing general fund contributions. The staff said they could self-certify as positive through 2027 only because of adjustments in the multiyear projection and temporary use of one-time funds. "So our June cash wouldn't be enough to cover our expenses till next December," the presenter warned, and said the district may need transfers from restricted funds or program adjustments if state actions do not improve the outlook.
