Diane Hodge provided the financial status update to the committee. She reviewed the district’s ending fund balance, noting that a significant portion of local tax revenues is received in April, which will positively impact cash flow in the coming months.

As of the end of March, the district’s ending fund balance was 7.21%. While this reflects stable financial positioning, Diane emphasized the importance of maintaining a conservative approach to spending for the remainder of the fiscal year.

Committee members were reminded to carefully evaluate expenditures by distinguishing between essential needs and discretionary wants. Continued fiscal discipline will be necessary to support the district’s financial goals and maintain an adequate ending fund balance.

Diane Hodge reviewed current budget updates with the committee. She reported that the district is planning a budget extension of approximately $1.0 million to address increased expenditures in Running Start and Special Education.

The budget extension public hearing is scheduled for the second board meeting in May. The 2026–27 budget public hearing and board action are potentially scheduled for the second board meeting in June.

Diane noted that the district currently maintains a balanced budget. Staffing updates include the addition of a 0.6 FTE Nurse/Sports Medicine position, and consideration is being given to adding up to a 6.0 FTE health aide position, contingent upon available funding. She also shared that the district has been more strategic in utilizing grant funds to support expenditures.

The district is still awaiting review and feedback from ESD on the F-203 revenue assumptions, which may impact final budget planning.

The committee discussed the need to revise the administrative salary schedule, noting that it has not been updated in several years. Diane Hodge reviewed current compensation comparisons, highlighting that, on an hourly basis, teachers at the top of the salary schedule earn approximately $81.62 per hour for contracted time. In comparison, the only building administrator exceeding that rate is the high school principal at approximately $82.33 per hour, a difference of less than one dollar. This comparison does not account for the additional evenings, weekends, and extended responsibilities required of administrators beyond contracted hours.

The committee discussed that these conditions raise concerns related to equity, retention, and recruitment. Over the past three years, three administrators have returned to classroom positions, citing higher hourly compensation and fewer required workdays and extended hours. Additionally, the committee noted ongoing recruitment challenges, including the Franklin Elementary principal position, which has remained open for several months without a strong applicant pool.

To address these concerns, the committee reviewed a proposed revision to the administrative salary schedule. The recommendation includes restructuring building administrator contracts from 260 days to 215 days, removing designated vacation and holiday days, and aligning the schedule more closely with actual work expectations.

The committee recommended that the revised administrative salary schedule be presented alongside all salary schedules at the April 29 board meeting for approval.