Finance director warns district may not make it past fiscal year as board reviews budget and audits

Miss Grant (S4) presented the district’s general fund statements and monthly salary report for February 2026, telling the committee the audited ending fund balance and the current projections “we might not make it past this fiscal year” without corrective action. She said the district’s audited fund balance and projected losses show operating pressure through the end of the year and noted a $3 million payment scheduled in July that will worsen cash flow.

The presentation included line‑by‑line figures for current assets and liabilities and a projection that the district’s modified ending general fund balance would be approximately $7,097,006.80; Grant emphasized that some of those funds are restricted and not usable for routine operations. She also reviewed sales tax collections and year‑to‑date revenues and warned that, after planned bond and debt payments, the district will likely run monthly deficits unless additional resources arrive.

Board members asked whether a pending state ballot measure could reduce the projected shortfall. Grant said some relief could arrive in the next fiscal year if statewide measures pass, but that it would not avert immediate cash‑flow and payment timing issues for this fiscal year. Committee members discussed options to shift budget lines, reassign summer‑learning funds and pursue targeted offsets to reduce the curriculum shortfall identified elsewhere on the agenda.

The superintendent and finance staff noted an audit finding related to budget presentation had been addressed and staff consider that finding resolved; Grant said she will continue required reporting on other audits until they are closed. The committee voted to move a set of proposed general‑fund budget adjustments to the full board for action, with staff directed to return with specific line‑item proposals.

What happens next: the committee forwarded the budget adjustments to the full board; the superintendent and finance team will return with recommended transfers and any additional measures to shore up cash flow ahead of July bond/debt obligations.