Updated forecast puts unrestricted reserves below the state minimum in 2028–29

What happened

Budget Advisory Committee materials project unrestricted deficits of $12.7 million, $13.2 million and $17.8 million across 2026–29. Without corrective action, balances decline to $35.2 million, $22.0 million and $4.2 million. The last figure is about $3.1 million below the $7.3 million state reserve requirement. Staff presented possible savings, not adopted cuts.

Why it matters to families

The forecast creates a concrete budget-planning problem despite a $49.9 million 2025–26 unrestricted ending balance. Vacancies, contracts, software and other expenses may be reviewed, but no specific program reduction is established by the worksheet.

The evidence

The October 7 deck shows the three-year deficits and a 1.72% final reserve against a 3% minimum. Its sample stabilization options are not a voted reduction plan. On October 14 the board postponed a separate proposal to lower its local reserve floor from 6% to 3%, leaving the higher local policy in place.

The source