Diane provided a financial status update and reported that the district received the April levy collection, which increased the April ending fund balance to 12.3%. Diane stated that current projections indicate the district should end the fiscal year slightly above the district’s 10% minimum fund balance target in August.

Diane emphasized that the district remains in a budget crisis and stressed the importance of carefully reviewing expenditures based on needs versus wants. She also noted that the current financial projections do not yet include the pending budget extension, as it will not be reflected until approved by OSPI.

Bob shared that he attended a superintendent meeting earlier in the day where several districts discussed moving toward maintaining a 10% ending fund balance due to ongoing financial pressures being experienced statewide.

The committee also reviewed enrollment trends. Diane reported that the district lost 14 FTE students from March to April and an additional 4 FTE students from April to May. The committee discussed that declining enrollment will result in reduced state apportionment revenue.

Diane reported that the 2026–27 budget has been completed, submitted to the ESD for review, and forwarded to OSPI for approval. The budget will be presented for board discussion on June 10, with the public hearing scheduled for June 24.

Diane stated that all programs were reviewed during the budget development process. The district will be capturing indirect costs from both Special Education and LAP programs. Diane also noted that the transportation program remains overspent, but there are currently no areas within transportation where reductions can reasonably be made. However, Jason Herichs, Transportation Supervisor, believes a portion of the overage may be recaptured in 2026–27 due to the addition of new routes.

Diane discussed that the district will be transferring $100,000 from the Capital Projects Fund to the General Fund to cover eligible software expenditures that are part of the district’s levy plan. She also shared that the district took a more strategic approach with grant budgeting this year by maximizing allowable grant expenditures to free up General Fund dollars and improve overall financial efficiency.

Diane emphasized that the district’s budget will continue to remain tight for the next several years. She explained that the district will likely need to pursue at least a $2 million levy in the next levy cycle, while noting that levy collections can fluctuate based on assessed property valuations.

Lisa discussed the importance of continuing to educate the community and staff regarding the district’s financial situation and budget challenges. 

Bob also discussed the importance of rebuilding the district’s curriculum budget. The committee discussed beginning planning during the 2026–27 school year for potential 2027–28 curriculum proposals.

There were no committee recommendations to the board.

Before adjourning the meeting, Ryan requested that the June 18 Finance Committee meeting be canceled due to the administrative retreat scheduled that day. The committee agreed to cancel the June 18 meeting.