Background:
The Budget Timeline
The budget process of a school district requires the district to produce and adopt a budget by June 30 for the upcoming year. The Board is required to certify twice each year that the district is able to meet its financial obligations during the year. The two intermediary reports afford the district the opportunity to adjust the budget’s revenues and expenditures based on the current climate and events. The First Interim Report reflects activities for July 1st to October 31st and is adopted by December 15th. The Second Interim Report covers July 1st to January 31st and is adopted by March 15th. By September 15th, the district publishes the Unaudited Actual based on July 1st to June 30th of the previous year.
Revenues
The Board will review the budget assumptions for the 2023-2024 Budget and Multi-Year Projection (MYP) at the June 1st board meeting during budget presentation. The assumptions included an estimate of the assessed valuation growth to be 3% in 2023-2024, and carried the assumption of 3% growth to year two and three of the MYP, 2024-2025 and 2025-2026, respectively, due to uncertainty of property tax growth. The one-time funding and other revenue proposals in the Governor’s May Revise will not be included in our budget until the budget bill is passed by the State Legislature and signed by the Governor.
Expenditures
Using our Estimated Actuals budget, the estimated ending balance for 2022-2023 is anticipated to be $45,604,275, unrestricted and restricted combined. The estimated ending balance of 2022-2023 is the beginning balance for the 2023-2024 budget adoption. Our MYP indicates that the District will be spending down our unrestricted fund balance over the next few years.
Summary
The presented 2023-2024 Budget Adoption reflects the District’s priorities for the upcoming year. It is anticipated that the District will be in a deficit spending position over the next few years. We anticipate additional budget adjustments to occur as the State goes through its budget adoption process. Staff will continue to monitor potential budget impacts closely.
Fiscal Implication:
Fund 01 General Fund 2023-2024
Unrestricted Beginning Balance: $36,484,817
Total Revenues: $107,041,918
Total Expenditures: $111,656,307
Unrestricted Ending Balance: $32,399,909
Estimated Reserve: 29.02%
Recommended Action:
It is recommended that the Board of Trustees approve the 2023-2024 Budget Adoption, as presented.