District finance staff warns of $1.5M in cuts as insurance, enrollment pressures mount

District finance staff told the board during the budget presentation that rising insurance costs and lower enrollment are tightening the budget and will require material reductions in spending.

Presenter said insurance costs rose by roughly $400,000 year over year — ‘‘about a 60% increase’’ — and warned, ‘‘We gotta cut another million dollars. We gotta figure out how to get 1000000 out. So 1000000 and 0.5 in the next 2 years, at least.’’ The presenter said the district is budgeting conservatively at 98% of a 10‑year enrollment average and that staff will continue weekly work to identify reduction options.

Finance staff projected the district’s general‑fund ending balance under current assumptions would be below the board’s 4% policy target and urged continued monitoring of accounts payable and grant receipts. Board members discussed delaying large capital purchases until the official Oct. 1 headcount is available and scheduled deeper reduction planning to begin in October.