Everyone is aware of the financial issue that the district found itself in last summer. In short the district had substantially overspending it's budget ($2M in 2022-23 and $4M in 2023-4) and that the available fund balance had been depleted to levels below policy and what was acceptable for business as usual operations. I do want to ensure people that money did not go missing. The money was spent on teachers and support staff, classroom materials and building infrastructure such as improving security. There were also some expenses that weren't properly included in the budget, and enrollment did not grow as expected.
Many factors complicate the situation, including the way post-covid budgets were in flux due to shifting spending and revenue patterns and that both the Superintendent and the Business Administrator were retiring. The board asked and was repeatedly assured the budget was balanced, I specifically asked at the June 13, 2024 board meeting and received a reassuring answer. Unfortunately that assurance was not correct.
There are multiple view of the causes of the issue. But I always look to take things back to the root cause.: When I joined the board we had "Business Services" Committee that was charged with reviewing the district's finances and making recommendations to the board. The committee included members of the public who were financial experts, and developed relationships with the Business Administrator that were distinct from the superintendent. This committee provided the necessary checks and balances to keep the district finances in order.
Years ago the board, under different leadership, eliminated this committee. I objected strongly at the time because I believed the oversight role as well as the community and administration communication was necessary. I had brought the topic up over the years, but never got anywhere. With the new administration that came on board last summer I planned on working to restart the group. After the financial news broke I authored the policy and charge to the newly constituted committee and have worked to get it off it's feet and running. The committee meets monthly and includes two community members with financial expertise.
One of my reasons for running again is to see to completion the task of making this committee effective, regularizing it's work and making sure it is enshrined in board policy.
What about the financial impact? The overall financial impact is surprisingly minimal. In the end the only cost is the interest on the additional funds we have to borrow to have sufficient cash for operations. Although the next budgets will see reductions in spending, these are reductions that should have been made to balance the budget over the last two years. It's going to feel bad, but its work we should have done already. We don't have the luxury of delaying reductions and dipping further into fund balance to soften any impacts. Here are some of the most impactful things on the table: reduction and reorganization of the district administrative staff, reduction of classroom staff to match reduced growth of student population and changes to the districts health plan.
