CFO Kimberly Johnson presented a new, simplified revenue-versus-actuals format for fiscal year 2026 (through September) and updated the committee on Prop S project spending, encumbrances and corrective actions taken after the district's financial audit.

Johnson said the district' current general operating budget projection is about $339 million; total projected revenue including Prop S and other sources was presented at roughly $416 million, and the year-to-date realized revenue figure reported for the first quarter was about 5.1% of that forecast. She pointed to under-realized local grants and food-service receipts in the early year-to-date totals.

On Prop S accounting, Johnson said the district previously issued a $135 million tranche from the 2023 voter authorization and issued the remaining $25 million tranche in March 2025. Of the budget available against the previously issued tranche, she reported roughly $58.3 million remained in the budget at fiscal-year-end; $29.9 million had been encumbered and about $7.7 million was spent in September. For the March 2025 $25 million tranche, Johnson said the presentation showed about $18.8 million obligated against an available balance of roughly $6.6 million for Prop S projects.

Johnson summarized the district' corrective action plan in response to audit findings, focused on four areas: strengthening long-term financial planning and monthly/quarterly budget reviews, tightening disbursement controls (including credit-card object-code limits), improving procurement documentation for emergency and sole-source purchases and ensuring salaries align with board-approved schedules and state statute. "We are looking at disbursements. That was another finding. We're looking at our credit cards. As of now, we have the credit cards that are limited to certain codes," Johnson said, describing one control change.

Committee members asked how eliminating long-unfilled positions would affect the operating budget. Johnson said staffing transitions are under way, that the district expects some savings but that enrollment-driven additions may offset some reductions; she said the district will present estimated savings to the board in upcoming materials.

The committee moved on from the presentation to other agenda items and adjourned at 1:21 p.m.