School Board reviews athletic fees and anticipates $2.1M deficit for fiscal year 2025

The Three Rivers Local School District Board convened on December 10, 2024, to address critical financial matters, including student participation fees for athletics and a five-year financial forecast that indicates a looming budget deficit.

A significant discussion centered on the need to reassess the pricing structure for student fees and ticket prices for athletic events. Board members expressed a commitment to ensuring that participation remains accessible for all students while acknowledging that it may be time to evaluate the current fee levels, which have not been raised in several years. The board plans to analyze the costs associated with each sport to determine if some are being subsidized by others, which could inform future decisions on fee adjustments.

In addition to the fee discussions, the board reviewed a five-year financial forecast that projects a deficit of $2.1 million for the fiscal year 2025. This deficit is attributed to various factors, including the return of over a million dollars in ESSER funds to the general fund and new collective bargaining agreements that include salary increases. The forecast indicates that local real estate taxes will remain the largest revenue source, but the district is also facing uncertainties regarding state funding and potential caps on revenue increases.

The board highlighted the importance of monitoring expenses, particularly salaries and benefits, which currently account for 74% of total expenses. With the goal of keeping these costs under 80% of revenue, the board is aware that rising expenses may outpace revenue growth in the coming years.

As the district prepares for potential budget shortfalls, board members emphasized the need for strategic planning and community engagement to address financial challenges while maintaining quality educational programs. The board will continue to explore options for managing the budget and ensuring that all students have the opportunity to participate in school activities.