Business Manager Kyler Mower presented the 2026–2027 District Budget, noting it was collaboratively prepared alongside Kim Ferra during the business office transition.

Mr. Mower provided an overview of the District's five operating funds:

- General Fund: Operates as the main operational fund accounting for standard educational and administrative resources.

- Capital Projects Fund: Restricted for technology refreshes, building remodels, and school modernization projects.

- Debt Service Fund: Used for general long-term debt accumulation. It was noted that the District currently carries no voted or non-voted debt.

- Associated Student Body (ASB) Fund: Student-managed funds dedicated to supporting athletic programs, clubs, and extracurricular activities.

- Transportation Vehicle Fund (TVF): Receives state depreciation reimbursements and is utilized for major repairs or bus acquisitions.

Historical Context: Prior to 2020, enrollment remained consistently above 620 FTE without a Transitional Kindergarten (TK) program. Following COVID-19, enrollment sharply dropped until TK was implemented in 2023–2024. TK funding is currently capped at 20 FTE.

Current Projections: An ongoing trend showed smaller incoming Kindergarten classes compared to graduating 8th-grade classes (e.g., ~60 graduating 8th graders vs. an estimated 40–45 incoming Kindergarteners).

Budget Basis: Administration conservatively set the initial baseline budget at 504 FTE. Late-summer choice transfer enrollments are expected to incrementally increase this count and improve projected revenue.

Choice Transfers: Total enrollment across the District currently stands around 515 students. Choice transfer metrics remain steady, with incoming transfers accounting for roughly 21% of total enrollment (compared to 20% in the previous year).

Beginning Fund Balance: The General Fund beginning balance was estimated at $1.62 million (~10%).

Ending Fund Balance: Projected at approximately $670,000 (~6%), reflecting the conservative enrollment projections. Mr. Mower acknowledged this projected ending balance sits below the District’s target policy of 8.33% (one month’s operating expenses / $\frac{1}{12}$th), but noted that conservative budgeting and anticipated higher fall enrollment aim to bridge this gap.

Capital Projects Transfer: A designated transfer from the Capital Projects Fund to the General Fund was introduced to reimburse valid capital-eligible supply and service expenses.

Fund Decreases: Projected expenditures outpace revenue in the ASB, Capital Projects, and TV Funds for the upcoming year due to delayed billing for summer construction projects, shifts in athletic referee expenses, and a scheduled bus delivery expected in Q1 2027.

General Fund Breakdown (Revenue & Expenditures)

Revenues:

-General State Apportionment (Basic Ed): 46.5%

-Local Property Taxes/Levies: ~28%

-State Special Purpose (Special Ed / LAP): ~12%

-Federal Grants (Title I, Title II) & Local Non-Tax/Transfers: Remaining balance.

Expenditures:

-Certificated Salaries: 40%

-Classified Salaries: 17.5%

-Employee Benefits: 20%

-Materials, Supplies, and Other Costs (MSOC): ~22.5%

Business Manager Mower presented the required MSOC disclosure, noting state basic education funding provides $834,000 against estimated expenditures of $1.66 million, leaving an unfunded balance of $821,000 for standard building, maintenance, and curriculum operations.

Superintendent Kirsten Rue clarified that MSOC costs appear higher than the standard 80/20 staffing-to-MSOC ratio because payments to the Educational Service District (ESD) Special Education Co-op are categorized under MSOC. While classified as MSOC in the budget, these contracts directly fund embedded personnel, including speech-language pathologists, psychologists, and the special education director.

The Board inquired about Choice Transfers into the District. Superintendent Kirsten Rue provided an update on choice transfers, noting that the percentage of families seeking transfer into Griffin School District remained consistent with previous years. The District accepted transfers where capacity permitted, while maintaining space for resident students.

Ms. Rue emphasized that state law requires the District to prioritize in-district students. Several grade levels faced tight seat counts, requiring administration to place pending choice transfer requests on a waitlist to prevent class overloads and staffing strains. Families on the waitlist were notified of the tight capacity. Superintendent Rue outlined a structured plan to review final enrollment figures:

- Administration scheduled a initial enrollment review for the week prior to the start of the school year.

- A final in-person count and evaluation will occur by the second or third day of school to render firm decisions on waitlisted applicants while avoiding teacher overloads.

Board Director Emma Rose inquired about where Special Education costs fit within the MSOC disclosure framework. Business Manager Kyler Mower clarified that the required MSOC disclosure slide strictly reflected Basic Education (Program 01) and District-Wide Support (Program 97). Special Education expenses fall under Program 21 (Special Services) and are funded through state special purpose revenues.

Director Rose noted that detailed MSOC funding differential data—such as basic education MSOCs being funded at roughly 50% of actual expenditures—proved highly effective during previous legislative advocacy efforts.

Mr. Mower and Director Rose agreed to schedule a follow-up meeting to review a comprehensive breakdown of all District MSOC figures (including Special Education and non-basic education programs) to support future advocacy work with elected officials.

Resolution 25-26-04 (Adopting the 2026–2027 Budget): The Board reviewed the presentation alongside Resolution 25-26-04, acknowledging the plan to restore ending fund reserves toward policy goals as actual enrollment stabilizes. Approval of the resolution formally accepts the fiscal plan and authorizes the internal fund transfers presented.

Superintendent Rue reported that an insurance policy previously scheduled for action following its first reading was reclassified as a Discussion Item.

Between meetings, the Washington State School Directors' Association (WSSDA) issued an updated recommendation for this policy, highlighted in green on page 45 of the board packet.

To ensure the Board had ample opportunity to review the newly introduced WSSDA language—and noting no emergency timeline for adoption—final action on the policy was shifted to the August board meeting.

Scheduled for August 12, from 1:00 PM to 5:00 PM. Facilitators from WSSDA will attend to lead conversations and assist the Board in establishing strategic goals and operational direction for the upcoming school year.

WSSDA Annual Conference & November Meeting Schedule:

-Superintendent Rue noted that the annual WSSDA Conference is scheduled for November, highlighting its historical value in delivering professional development regarding school district governance and addressing systemic challenges.

If Board members elect to attend the conference, the November regular board meeting—currently scheduled for a Wednesday—will need to be rescheduled to accommodate Wednesday afternoon departure logistics. Board members were asked to provide feedback to Board Chair Trish to inform upcoming scheduling decisions.

Superintendent Rue introduced Facilities Supervisor Alex Jones, who presented an overview of summer maintenance, modernization, and capital improvement projects across the district:

-Flooring Refinishing: Resurfacing and refinishing work was completed across several main corridors, including the 6th-grade hallway, elementary wing, portions of the 4/5 pod, and down to the connector hallway.

-Parking Lot Maintenance: Striping and maintenance on the side parking lot were completed. Work on the lower bus parking lot was scheduled for the following week, upon conclusion of a facility rental agreement with an external organization.

-Restroom Refresh: Modernization and refreshes were underway in the 4/5 pod restrooms (boys, girls, staff, and multi-use). Mr. Jones offered to provide progress photos or lead a brief tour at the next board meeting.

-LED Lighting Conversion: Upgrades to LED fixtures with automated controls (e.g., occupancy sensors) were scheduled for mid-August. Mr. Jones noted that Puget Sound Energy (PSE) provided documentation projecting energy and cost savings for the district.

-Air-to-Water Heat Pump Project: Work continued in coordination with the Washington State Department of Commerce. Interior work was prioritized for completion before school started, with external installation continuing through autumn (projected completion between October and December) without disrupting instruction.

-Library Furniture Installation: Deliveries arrived for a full library package, including new student desks, chairs, soft seating, and a teacher workstation. Assembly was scheduled over the subsequent weeks.

-General Custodial Operations: Summer deep cleaning, routine repairs, and building maintenance remained on schedule across all facilities. 

Superintendent Rue commended Mr. Jones and his team for their strong leadership and progress over the summer.

Business Manager Kyler Mower introduced a new template designed to enhance financial transparency through monthly visual reporting. Reports reflect the preceding month’s financial status (June data presented in July).

General Fund Overview:

- Ending Fund Balance: Recorded at approximately $700,000 for June, with a projected year-end fund balance of $1.26 million (~10% of revenue).

- Revenues & Expenditures: Revenue collection reached 81% of budgeted amounts, while expenditures stood at 86%.

- Budget Extension: Mr. Mower stated that total expenditures are expected to remain within budgeted limits, eliminating the need to request a formal budget extension in August.

Enrollment Metrics: Final enrollment for the 2025–2026 school year closed at 580 FTE (including TK), surpassing the budgeted baseline of 575 FTE. Mr. Mower outlined plans to implement a projection trend tracking tool to closely monitor monthly enrollment variations.

Cash Flow Timing & State Apportionment Lag:

- Leadership noted that revenue spikes occur in October and April due to local tax/levy disbursements, followed by dips in November and May when non-high district tuition payments are made.

- State Payment Lag: A significant 22.5% of annual state apportionment funding is held until July and August—after the instructional school year ends. District Leadership noted that this state fiscal schedule creates cash flow squeezes during winter months (January–March), underlining the necessity of maintaining robust fund reserves.

Special Education Safety Net Funding:

- Safety Net reimbursement claims for high-cost Special Education students (exceeding $30,000 per student) are also withheld by the state until August. Because these funds are not guaranteed, they cannot be budgeted in advance.

- District Leadership discussed the history of Safety Net funding (originating roughly around the McCleary decision period). Superintendent Rue commended the Special Education Co-op for managing the rigorous compliance standards and IEP documentation required to successfully qualify for state Safety Net reimbursements.

Other Funds Status:

- Capital Projects Fund: Collected 107% of projected revenues. Invoicing for major summer projects will roll into the next fiscal year.

- Debt Service Fund: Exceeded revenue projections due to strong investment returns managed by the county.

- Associated Student Body (ASB) Fund: Exceeded projected revenue through student fundraising and event receipts.

- Transportation Vehicle Fund (TVF): Revenue appeared low (21–22%) as it currently reflects investment interest only; state bus depreciation reimbursements (accounting for the remaining ~78%) are credited late in August. A planned bus purchase was shifted to Q1 2027.