District staff warn of multi‑year shortfalls; present one‑time fixes and reserve risks

A district staff member reviewed the 1st interim and multi‑year budget projections and highlighted risks to the district’s reserves if current revenue assumptions hold. The presenter reported a fund balance of $15,000,000 at 1st interim — described in the meeting as "$3,000,000 over our reserve" — and said a combined revenue reduction of about $3,000,000 is projected for 2026–27. Staff also said that one‑time grants (a student support professional development block grant and the COVID learning emergency recovery block grant) increase near‑term revenue but are not ongoing.

The presenter described a projected reserve shortfall of about $1,900,000 in 2027–28 and noted a negative projected fund balance in a later year (the transcript said "a negative $3,400,000" for the district’s fourth year projection without the one‑time proposal). Staff outlined an approach that would use restricted one‑time funding to offset some unrestricted expenses for planning purposes; using that approach the presenter said the fourth‑year projection could be presented as a positive $4,000,000 fund balance for planning, but cautioned that the approach depends on allowable uses of restricted funds and that it would not create ongoing revenue.

Board members asked clarifying questions about assumptions and long‑term effects. Staff reiterated the district must consider both expense reductions and revenue strategies, and that hard choices (including $8,000,000 in potential expense reductions in the worst‑case scenario) could be required if structural deficits persist.