The Saugus Union School District governing board has approved a positive certification for the district’s second interim financial report.
According to the presentation included in last week’s meeting agenda, in March the district reviews the second interim, which reflects projected revenues, expenses, and year-end fund balances based on data through Jan. 31.
The agenda reads, “District staff is asking the governing board to approve the 2024-25 second interim report with a positive certification.”
A positive certification means that the district is projecting to have enough available reserves this school year and the next two years to meet the state’s requirement of 3% of projected expenditures.
Nick Heinlein, assistant superintendent of business, presented the second interim report to the governing board.
According to the presentation, the district is projected to have reserves of about $18 million after this year, followed by $18.6 million after next year and then $20.9 million the following year after commitments.
The reserve percentage is projected to go up, from 12.59% this year to 13.18% in the next school year and then 14.33% in 2026-27.
The district is projected to be deficit spending this year and the next two years. It is projected to spend about $143.6 million this year, against about $139 million in revenues, a difference of $4.5 million that is set to come out of the district’s fund balance. The next two school years the district is projected to be closing the gap and deficit spending down to about a $2 million difference.
By 2026-27, expenditures are projected to increase to $146 million while revenues are projected to increase to nearly $143.7 million, a difference of nearly $2.3 million.
The total ending fund balance for this school year is projected to be nearly $31 million, followed by about $28.7 million next school year and then just slightly over $26 million for the 2026-27 school year.
Board member Katherine Cooper motioned to approve the second interim report and board member Matt Watson seconded the motion. The motion passed 5-0.
