Finance director flags enrollment-driven revenue decline and February cash shortfall

Finance director Miss Morrison told the board that the division's special revenue funds remain largely self-sustaining: the cafeteria fund is projected at about $861,693 next year and the textbook fund at $161,527 (per VDOE estimate). Morrison said those funds can be rolled from year to year but cannot be used to fill operational deficits.

Morrison also reported the operating fund position: in February the division recorded inflows of $1,800,000 and spending of $2,000,000, which she said increased the existing operating deficit by $132,944.42. Morrison said that timing differences in state funding and recurring fixed costs that don’t fall proportionately with declining enrollment are driving the shortfall. She told the board she will publish February comparative slides showing prior-year results and will include that comparative data regularly going forward.

Board reaction: Members asked for historical month-to-month comparisons to judge whether the current deficit is an anomaly. Morrison said the audit process for FY25 has not begun but that the division expects typical audit timelines following auditor start dates.

Next steps: Morrison said staff will work with City Finance on a spending plan, propose budget amendments where necessary and return with updated projections in future meetings.