Board hears FY27 budget projection: $18.2M deficit, fund balance set to 23.7% and long‑range choices ahead

Kelly Bannousa, director of business services, gave the board a detailed overview of the proposed fiscal year 2027 budget and five‑year projections. The FY27 budget shows $349.6 million in revenue and $367.8 million in expenditures, producing an anticipated operating deficit of $18.2 million and a projected year‑end general‑fund balance of $87.2 million (23.7% of expenditures). Bannousa told the board that revenue increases were driven in part by special‑education revenue gains, tuition adjustments, and English‑learner revenue while expenditure pressures came from compensation, special‑education investments, transportation contract costs and utilities. "That results in an anticipated operating deficit of 18,200,000 and a projected year end fund balance of 87,200,000," Bannousa said.

Finance staff and the superintendent framed the district's position as stable today but on a watchful trajectory: the presentation noted the district currently spends "more than $1,000,000 a day" on core operations and showed scenarios for modest operational adjustments (e.g., $2M in year‑one) versus larger, phased reductions to close a structural gap the staff estimated at roughly $17.5M per year. Board members asked about the glide process, community communication timelines and staff plans to align budgeting decisions with student‑outcome priorities.