Interim budget report shows multi‑year deficit; board hears transfer and reserve plans
Summary
District staff presented an interim financial report showing a projected reduction in unrestricted fund balance and multi‑year deficit pressure driven by spending commitments, lower federal funding and one‑time timing differences; trustees asked for follow‑up on contingency plans and spending priorities.
District fiscal staff presented the unaudited interim financial statements and an updated multi‑year projection showing a decline in unrestricted general‑fund reserves over the next several years if no changes are made. The presentation showed a one‑time positive adjustment from market value increases in investments but a projected combined net reduction in reserves driven by program carryforwards and ongoing staffing costs.
Staff walked trustees through revenue and expenditure drivers, noting a decrease in federally funded program spending carried into the next fiscal year, planned transfers for safety and security (including cameras and radio upgrades), vehicle replacements and commitments to curriculum materials and device refreshes. The district’s nonrestricted reserves were projected to fall from current levels toward a lower percentage of the budget in the coming years; staff warned that without continued vacancy control, targeted cost reductions or revenue increases, the district will approach a negative unrestricted balance by the 2028–29 projection in the materials presented.
Trustees asked for follow‑up information including a clearer schedule for planned capital projects, a report on the timeline and cost drivers for school modernization work, and updates on how fluctuations in construction costs (a noted 47% increase recently) might affect project budgets. Trustees also requested an itemized accounting of unspent program grants and a clearer breakdown of one‑time vs ongoing costs that drive the multiyear projection.
Staff said they will return with a refined multi‑year plan including specific actions to reduce the structural deficit, and they noted that final audited figures will be available in October when the county audit is completed.
