The William S. Hart Union High School District governing board on Wednesday is set to approve a positive certification for the district’s second interim financial report.
Essentially, this means that the district is projecting to have enough available reserves this school year and the two subsequent ones to meet the state’s requirement of 3% of projected expenditures.
“Based on current revenue and expenditure assumptions, staff recommends a positive certification of the 2024/25 second interim financial report,” the agenda reads.
According to the financial documents provided with the agenda for Wednesday’s meeting, the district is projected to have reserves of $34.4 million after this year, followed by $33.25 million after next year and then $22.4 million the following year.
The reserve percentage is projected to go down, though, from 10.06% after this year to 6.41% after 2026-27.
That’s because deficit spending is being projected for the foreseeable future. The district is projecting to spend just under $343 million this year against $311.1 million in revenues, a difference of nearly $32 million that is set to come out of the district’s savings. Similar deficit spending is projected for each of the next two school years.
By 2026-27, expenditures are projected to increase to $349.5 million while revenues are only projected to increase to $321.7 million, a difference of nearly $28 million.
The total ending fund balance for this school year is projected to be $85.7 million, followed by just under $53.9 million and then just over $26 million.
School districts across the state are required by law to update the state on how they are doing financially twice per school year before formally adopting the next year’s budget in June.
“The first report covers the financial and budgetary status of the district for the period ending October 31, 2024,” the agenda reads. “The second report covers the period ending January 31, 2025. Both interim reports require governing board approval and certification of the district’s financial condition. The purpose of the interim reporting process is to raise early warning flags for districts that will not be able to meet financial obligations for the current or two subsequent fiscal years.”
Wednesday’s meeting is set to begin at 7 p.m. at the district’s administrative office, located at 21380 Centre Pointe Parkway. To view the meeting online, go to tinyurl.com/mr42t39f.
