District projects a third year of deficit spending

What happened

The adopted 2026-27 budget projects a $12.9 million drop in unrestricted fund balance after deficits of $10.3 million in 2024-25 and $15.1 million in 2025-26.

Why it matters to families

The district still projects reserves above the state minimum, but continued deficits reduce its cushion: available reserves are projected to fall from $13.4 million in 2026-27 to $6.4 million in 2028-29.

The evidence

The budget's state criteria report says the deficit-spending standard was not met and attributes the deficits to increased operating costs for underfunded programs. Its multiyear projection lists declining available reserves while still meeting the statutory reserve test.

The source