Audit and finance committee hears preliminary 2025–26 summary showing $767,000 deficit, reserves near 4% target

The Audit and Finance Committee heard a preliminary year-end financial summary for the 2025–26 fiscal year showing a $767,000 deficit. Chair presented the high-level totals, saying budgeted expenditures were $116,100,000 while actual expenditures were approximately $116,500,000 after accounting for prior-year carryovers.

Chair emphasized the mechanics behind that result, noting the district had budgeted $113,500,000 in revenue (excluding an assigned fund balance of $2,500,000) and that carrying forward $1,200,000 from the prior year affects the comparison between budget and actuals. "We did have a deficit of 767,000 for the 2526 fiscal year," Chair said. The presentation showed an unassigned fund balance of $4,800,000, equal to 3.94% of the budget — just short of the 4% threshold the district aims to maintain.

Committee members asked about implications for the coming budget cycle and whether the use of some assigned fund balance was one-off or a trend. Chair said staff will highlight the items on Tuesday’s full-board agenda and requested feedback from committee members on items to emphasize when the report is presented to the board.