During a recent board of education meeting, significant updates regarding the fiscal year 2025 budget were presented, highlighting two major adjustments that will impact funding allocations.

The first adjustment pertains to the Evidence-Based Funding (EBF) model, which saw a substantial decrease in expected state funding. Initially, the board had budgeted for an increase of approximately $2.58 million based on previous years' allocations. However, the actual calculation revealed a return to the FY 23 funding level of $1.23 million, a reduction attributed to an increase in the number of tier one districts, which diluted the available funding pool. This year, 29 additional districts qualified for tier one status, representing around 90,000 additional students, thereby reducing the per-district allocation.

The second adjustment involves interest earnings, which exceeded budget expectations in FY 24. The board reported interest earnings of approximately $2.4 million, prompting an increase in the FY 25 budget line item for interest earnings from $1.5 million to $2.1 million. These adjustments have resulted in an operating surplus of approximately $1.1 million, down from an earlier projection of $2.2 million.

Looking ahead, the board will finalize the budget during a hearing scheduled for September 5, where further adjustments, including transportation reimbursements and potential health insurance tweaks, will be discussed. The board remains committed to keeping stakeholders informed as the budget process continues.