Western Placer schools end year $10.5M above projections amid cash reserve concerns

A divided Western Placer Unified School District board initially failed to approve the district’s year-end financial report last week, then revived the issue later in the same meeting and approved it after further discussion over a $250,000 reserve transfer.

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The first motion deadlocked 2-2, with board members April Nitsos and Jason Price voting in favor and Marjorie Proffitt and Criste Freymond opposed. Near the end of the meeting, board members returned to the failed vote and paused while the district determined whether the item could be brought back for reconsideration.

After the board determined the item could be reconsidered, Proffitt reopened the discussion. Board members further discussed whether approving the unaudited actuals amounted to approving new spending or simply accepting the district’s accounting of revenues and expenditures from the 2025-26 school year.

The board then reconsidered the item and approved the financial report as presented.

The unusual sequence of votes Sept. 15 came as the district reported a $29.3 million general fund balance at the end of the 2025-26 school year, about $10.5 million more than it had projected.

But much of that balance was restricted or designated for specific purposes, and the district’s chief business officer warned that its unrestricted reserves remained well below the statewide average for unified school districts.

The dispute centered on a $250,000 transfer from a reserve associated with wetlands-related funds. District staff said the board had previously authorized the transfer to help balance the prior year’s budget, with the expectation that the money would eventually be restored.

Board members debated whether the $250,000 should be returned before the financial statements were approved.

Superintendent Kerry Callahan said the board could direct the district to restore the money, which would reduce the reported ending balance by $250,000, or leave the financial statements unchanged and address repayment at a future meeting.

The board ultimately left the financial statements as presented.

Emma Oehler, a district spokesperson, said the financial information presented to the board was accurate and reflected spending and budget decisions previously approved by the board.

“As discussion continued, it became clear that there were ongoing Board concerns about a prior decision involving funds set aside for future wetlands mitigation,” Oehler said.

WPUSD ended the 2025-26 school year with about $131.7 million in revenue and $129 million in expenditures.

The larger-than-expected fund balance was driven in part by money that was budgeted but not spent, including about $4.7 million in supplemental Local Control Funding Formula money and unspent funds for textbooks, technology and co-curricular programs.

The $10.5 million difference did not represent an equivalent amount of newly available money. Under the district’s year-end accounting process, unspent money allocated to specific programs is carried forward in the ending fund balance and budgeted for those programs in the new school year.

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The district also reported higher-than-expected revenue from transportation allocations and local sources.

Despite the stronger year-end balance, district officials warned that the district faces tighter finances ahead.

Western Placer Unified expects to reduce ongoing spending by about $3.5 million beginning in the 2027-28 school year, according to a presentation by Chief Business Officer Carrie Carlson.

More immediately, Carlson raised concerns about the amount of unrestricted money the district has available as a financial cushion.

The district ended the year with about $3.8 million in its reserve for economic uncertainties. An additional $1.2 million in unassigned unrestricted reserves brought the combined total to about $5.1 million.

Carlson said the unrestricted, unreserved fund balance was 4.4% of total general fund expenditures, transfers out and other uses. She noted that the average for unified school districts in California was 21.8%.

She said the lower percentage is partly tied to the district’s growth, as growing districts can typically maintain smaller reserves than districts experiencing declining enrollment and revenue.

“I’m uncomfortable with ours because I think they are simply too low,” Carlson said.

Carlson said WPUSD was researching how its reserves compared with other school districts in the area.

The year-end figures remain unaudited. The district’s financial results are audited each fall, with audited financial statements presented to the board by Jan. 31.

The distinction between those reserves and the district’s $29.3 million overall general fund balance is significant. The larger figure includes restricted and designated money that is not available for general spending.

This story was originally published September 24, 2026 at 2:36 PM with the headline “Western Placer schools end year $10.5M above projections amid cash reserve concerns.”

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