Kuna district CFO warns of steeper fund-balance draw, outlines two-year plan to recover
February 11, 2026 | KUNA JOINT DISTRICT, School Districts, Idaho
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CFO Jonathan Gillard told the Kuna Joint School District board that the district’s financial picture is weaker than anticipated, projecting a roughly $2.1 million reduction in fund balance this fiscal year, up from the $1.5 million draw assumed when last year’s budget was adopted.
“Based on the projections I’ve run, you’ll be around $2,100,000 that we’ll lose this year based on expenses,” Gillard said. He warned that the shortfall reflects several drivers: state-mandated changes to salary-minimum schedules, operating-cost inflation that outpaced state increases, and escalating special-education expenses.
Why it matters: the district expects to finish the year with about a 17% fund balance, which Gillard described as “still a good healthy amount,” but he cautioned shrinking reserves reduce flexibility to respond to midyear funding changes and could influence bond evaluations if reserves fall further.
Plan presented: Gillard outlined a two-year approach to limit the impact. The administration aims to identify roughly $1.1 million in savings through natural attrition, delaying or phasing capital spending, and trimming materials and services. He said the district will run another round of projections and present a draft 2026–27 budget and a work session in May to detail revenue and expense options.
On revenues: Gillard noted limited local control over enrollment-driven revenue but said small increases in attendance (even a tenth to a half percentage point) could bring meaningful operational dollars. He also warned that Medicaid reimbursements do not keep pace with rising special-education costs and that the general fund increasingly has to absorb the gap.
Next steps: trustees asked for monthly-expenditure figures and additional detail on the components of the projected shortfall. Gillard said he will circulate more granular numbers and bring a fuller 2026–27 revenue projection to the May work session.
The board did not take formal action on the budget at the meeting; Gillard recommended continued monitoring and a phased approach to any reductions.
“Based on the projections I’ve run, you’ll be around $2,100,000 that we’ll lose this year based on expenses,” Gillard said. He warned that the shortfall reflects several drivers: state-mandated changes to salary-minimum schedules, operating-cost inflation that outpaced state increases, and escalating special-education expenses.
Why it matters: the district expects to finish the year with about a 17% fund balance, which Gillard described as “still a good healthy amount,” but he cautioned shrinking reserves reduce flexibility to respond to midyear funding changes and could influence bond evaluations if reserves fall further.
Plan presented: Gillard outlined a two-year approach to limit the impact. The administration aims to identify roughly $1.1 million in savings through natural attrition, delaying or phasing capital spending, and trimming materials and services. He said the district will run another round of projections and present a draft 2026–27 budget and a work session in May to detail revenue and expense options.
On revenues: Gillard noted limited local control over enrollment-driven revenue but said small increases in attendance (even a tenth to a half percentage point) could bring meaningful operational dollars. He also warned that Medicaid reimbursements do not keep pace with rising special-education costs and that the general fund increasingly has to absorb the gap.
Next steps: trustees asked for monthly-expenditure figures and additional detail on the components of the projected shortfall. Gillard said he will circulate more granular numbers and bring a fuller 2026–27 revenue projection to the May work session.
The board did not take formal action on the budget at the meeting; Gillard recommended continued monitoring and a phased approach to any reductions.
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