Hillsboro School District confronts $20 million budget deficit amid declining enrollment

The Hillsboro School District's recent board meeting on April 22, 2025, highlighted significant financial challenges facing the district, including a projected $10 million deficit in the general fund for the current fiscal year. This alarming figure is attributed to a combination of declining student enrollment, rising non-staffing costs, and unexpected increases in insurance premiums, which are anticipated to rise by nearly 20% next year.

During the meeting, district officials discussed strategies to address the budget shortfall, emphasizing the need for a supplemental budget to manage these financial hurdles. The board acknowledged that student enrollment has been declining at a rate of approximately 1.2%, with external forecasts predicting a more severe decline of around 4% in the coming years. This trend poses a long-term challenge for the district, as it directly impacts revenue growth and necessitates careful budget planning.

In addition to enrollment issues, the board expressed concerns over non-staffing costs, which have exceeded previous estimates. The discussions revealed that the district has been operating under a tight budget, with a current reserve fund balance of only 4%. Board members voiced their discomfort with this low reserve level, recognizing that it limits the district's ability to respond to future financial crises.

The conversation also touched on the importance of maintaining a healthy reserve fund, with some board members advocating for incremental increases to bolster financial stability. They acknowledged that while the current economic climate is uncertain, having a reserve is crucial for navigating potential future challenges.

Looking ahead, the district anticipates needing to eliminate nearly $20 million from the general fund to balance the budget for the next fiscal year. This daunting task will require a combination of operational adjustments and continued efforts to find efficiencies within the district's budget. The board's discussions underscored the urgency of addressing these financial issues, as they could have lasting implications for the quality of education and resources available to students in the Hillsboro School District.

As the board prepares to present a supplemental budget proposal, the community remains watchful of how these financial decisions will shape the future of education in Hillsboro. The meeting concluded with a commitment to ongoing discussions about financial strategies and the importance of maintaining a sustainable budget in the face of declining enrollment and rising costs.