Binding Conditions: Current State of the Budget

In August 2023, the district was placed in "binding financial conditions" due to submitting a deficit budget to the state. Later, it was moved into "enhanced financial oversight" and assigned a special administrator to work with the district and a state-appointed financial oversight committee. Binding conditions occur when a district adopts a deficit budget, meaning its expenditures exceed revenues.

Since entering into binding conditions and enhanced financial oversight, the district has taken several steps to right-size the budget, including reductions in personnel, goods, services, contracts, and monitored spending. In addition, The district ended the 2023-24 school year with a positive ending fund balance but still has work to do to exit binding conditions.

The work of the budget continues. While the 2024 - 2025 school year budget has been set, the budget is an estimate, and the actuals may change somewhat throughout the year. As addressed in the December 18, 2024, update below, the finance team consistently monitors and reviews each area of the budget, including enrollment, which drives revenue. Budget management strategies are also in place, including discretionary spending, monitoring, and contingency planning. Tools, training, and support by experts in the financial field are also in place to ensure budgeting practices are utilized effectively.