91porn

REPORTS TO THE BOARD

Financial and Enrollment Report

To: Asha Riley, Superintendent

From: Stacy Brown, Director of Business Services

Date: July 7, 2025

Subject: July Financial Update

2025–2026 Budget Process Update

The 2025–2026 budget is progressing well. Salary and benefit estimates have been finalized, and revenue projections are complete. I am currently working on calculating non-salary expenditures across all programs and uploading the necessary data into the OSPI system to generate the F-195 Budget document.

As Asha noted in her Friday message, we’ve encountered an unexpected challenge from the federal level—one that is impacting districts nationwide, not just in Washington State. OSPI had been confident that federal Title allocations for the 2025–2026 school year would be available and advised budgeting them at 2024–2025 levels.

We have since received allocations for Title I and Special Education—our largest federal funding sources—and it appears those are secure for the coming year. However, uncertainty remains around several smaller but still significant allocations:

• Title II/Title IV – currently funded at $94,000
  
  
• Title III – currently funded at $28,000
  
  
• Title I, Part C – Migrant – currently funded at $31,000
  
  

At this point, I am proceeding under the assumption that we will not receive funding for these programs in 2025–2026. That said, we are hopeful that OSPI will provide definitive guidance before the final budget approval deadline at the end of August.

Financial Update

Due to the timing of the June board meeting, there was not sufficient time to fully close out the month of May. Similarly, the early date of the July board meeting did not allow enough time to close out the month of June, as I typically do not receive the County Treasurer’s Report until around the 8th of each month.

As a result, I have included May’s financial information in this update. The financial data for both June and July will be included in the August board update.

TVF Fund Savings and $50.00 per Student Funds Received

With the recent award of EV grants, the KWRL Superintendents have reviewed the TVF balance and determined that member districts do not need to contribute to the TVF fund in 2025–26, which is a substantial savings. 

As you may recall from our 2024–25 budget discussions, the district requested—and received—approval from KWRL to defer the 2024–25 TVF payment to the 2025–26 fiscal year. For our district, the amount originally deferred was $117,513.

Additionally, as noted above, we will receive $50.00 per student from the legislature, which we received in June at $114,821.  Asha and I have made the decision to use these funds to cover the 24-25 TVF payment that we originally were going to defer to 24-25.  The August board agenda will include a recommendation of a resolution approving the transfer of $117,513 from the General Fund to the Transportation Vehicle Fund, to be made by the end of August.

Financial Update

Financial Information Summary as of May 31, 2025, based on attached documents.

• Fund Balance: Per the attached documents, the fund balance is projected to decrease by  $177,000, which is about $500,000 favorable to the budget.  We have made the decision to complete some much-needed maintenance projects this summer, and we are going to use some Capital Projects funds, but will also be using some General Fund, which could affect the projected calculated fund balance by as much as $150,000.
• Minimum Fund Balance: June fund balance is more than $900,000.  This was the last month in the year when the fund balance could have fallen below zero, requiring a loan from CPF.  I am pleased we cleared this hurdle without needing the loan.
• Revenues: Now that we are through May, local revenues have actually surpassed the projected amount through May.  State special-purpose funds continue to be greater than expected, mainly due to increased special education funding, due to student counts being greater than budgeted.  We also just found out that we are going to get $766,000 in Safety Net funds.  We applied for $774,000 (receiving almost 99% of what we applied for) and the budget was $700,000 so this is a nice increase over budget.  Way to go Jake, Nichole Lester, Michelle McLaughlin, and the other Special Education staff who worked so hard for these funds!  Transportation funding also contributes to higher-than-projected revenues.
• Overall Expenditures: Generally close to projected amounts.
• Budget Variance Report:  Through May,  total revenue was $439,000 more than planned, and total expenditures were $280,000 less than planned. The combined result is a $739,000 favorable surplus to date. For further details, please see the Budget Performance Update Report attached 

Attached Documents:

• Budget Performance Update Report (page 1)
• Month-End Fund Balances (page 2)
• YTD Financial Forecast (page 3)
• High-level summary of year-to-date revenues and expenditures.
• Projected amounts for the rest of the year.
• Projected ending fund balance.
• Budget Status Reports for all funds (pages 4-8)

Enrollment

The June enrollment decreased by 23 students and 23.35 FTE compared to May (Headcount Enrollment on page 9). The full decrease is at TEAM High as we have some students who completed their graduation requirements early. If they complete their requirements, we are not allowed to count them.  The FTE count is currently 22.36 FTE below the budgeted allocation and the year-to-date average FTE is 6.38 above budget (FTE Enrollment on page 10). Special Education enrollment is up a total of more than 13 students over budget. Both are factored into the annual projections.

As always, please let me know if you have any questions.