February Financial Update

The district shared updated projections for the end of the 2025–2026 school year at the February 5, 2026, Board Finance Study Session, and the outlook shows steady, encouraging progress. 

Revenue is coming in slightly lower than expected, about $5.3 million under the original budget, mainly because student enrollment was lower at the start of the school year, especially in September when many students typically join throughout the month. Even though overall enrollment goals are being met, the timing of those enrollments affects the state funding formula. 

The positive news is that district spending is also coming in lower, and by a bit more than the drop in revenue. Expenditures are projected to be $5.8 million under budget, driven in part by lower special education student enrollment and contingency funds that haven’t been tapped so far. As a result, the district is on track for a modest increase in its projected ending fund balance, now expected to be about $1.9 million, roughly $500,000 higher than earlier estimates. 

To help manage cash flow for payroll, the district continues to use a $13 million interfund loan that began over the summer. Long-term stability will require a fund balance of about 6% to cover payroll without borrowing. While the district isn’t there yet, the current trajectory reflects improvement and movement toward that goal. 

Enrollment is up slightly compared to last year, and financially, the district has moved from a deficit last December to a positive position this year, with annual expenditures now staying within annual revenue. The ending fund balance has improved by more than $4 million since this time last year, another encouraging sign that the district’s financial footing is gradually strengthening. 

The next Finance Board Study Session will be held following the April 16, 2026, Board meeting, and a community message will be shared afterward. Board Finance Study Sessions will continue to be provided every other month for the remainder of the school year. 

Dr. Heather Sánchez, Chief Operating Officer 
Mr. Loren Tillman, Interim Chief Financial Officer