Finance staff presents 2026–27 budget forecast showing modest deficit and revenue pressure

District finance staff presented an overview of the 2026–27 budget and the multiyear projection, describing a forecast that shows a modest deficit and reliance on restricted one‑time funds. The presenter said, "Total revenue is forecast at 4,500,000, down 376,000 from 25‑26," and explained that many of the newly proposed state revenues were not yet approved by the legislature and therefore were not included in the budget estimates (Finance staff, SEG 1169-1176; SEG 1169).

Staff described the composition of revenues and the limits on how categorical funds can be used, saying some new dollars are one-time and restricted and therefore cannot be used to cover ongoing unrestricted expenditures. The finance presenter also explained a system input error that had overstated vacancy savings and that corrections to FTE inputs reduced projected salary savings; the adjustment reduced the projected deficit but did not eliminate it (SEG 1340-1354; SEG 1400-1410).

The staff forecast estimated an ending fund balance near $1,000,000 for 25‑26 and projected the 26‑27 ending balance to be lower in subsequent years unless early adjustments are made. The district plans a 45‑day revised budget in mid‑August to reflect confirmed legislative revenue decisions and updated enrollment figures, and staff recommended exploring both short‑term and structural adjustments to address out‑year deficits (SEG 1418-1430; SEG 1660-1666).