Budget Status Report

• Diane discussed meeting the 46:1 basic education teacher ratio. Currently, the ratio stands at 56.8:1, which is above the target.
• K-3 class size compliance is set at 17:1, and we are currently at 16.02:1, which keeps us in compliance.
• Reviewed the latest Avista billing, which showed an increase of $23,500 from December to January despite mild weather conditions.
• Revenue has increased by $400,000 due to higher enrollment numbers.

Cash Flow through December/January

• The estimated ending fund balance for August is projected to be 7.73%. The goal remains at 9% to prepare for unexpected expenditures.
• Bob emphasized the importance of monitoring the fund balance to avoid the need for loans to cover payroll.
• Diane reported a 6% increase in water rates as of January.

• Bob discussed the upcoming listening session, where Diane will provide a foundational Budget 101 presentation.
• Bob is reviewing potential survey questions for staff, community members, and possibly students.
• Arron emphasized the need to communicate that the board makes final decisions based on discussions at all levels.
• Bob suggested adding a budget-related Q&A section to the district website for increased transparency.

• Bob reviewed key legislative updates:
  • A proposed bill may provide an additional $1 million in local effort assistance.
  • Strong legislative support exists for special education and MSOC funding bills.
  • There is potential for minor funding from transportation-related bills.
  • The state is facing a budget decline and is not fully meeting its funding obligations. Still optimistic that some additional funding will be secured this session.
• Bob reminded everyone that the district will enter bargaining negotiations with three employee groups this spring.

• Bob outlined that any restructuring decisions will depend on the budget status.
• The district aims to rebuild areas requiring additional support, subject to board approval.
• Concerns exist regarding potential reductions in federal funding.
• If necessary, a Reduction in Force (RIF) resolution would need board approval.
• Attrition will be evaluated after receiving Intent to Return forms, which are due by March 1 and we review the rolling up of cohorts and enrollment.