Elkhart Community Schools plans financial reforms after $10M cash shortfall

The Elkhart Community Schools Board of School Trustees convened on May 13, 2025, to address pressing financial challenges and personnel changes within the district. The meeting highlighted a significant budget shortfall, with a reported $10.4 million drawdown in cash over the past year, raising concerns about the district's financial sustainability.

Superintendent Dr. Hough emphasized the urgency for immediate action, warning that if spending trends continue, the district could face insolvency by 2026. He noted that student enrollment has decreased by 12% since 2019, while the number of certified staff has remained constant, resulting in a rising student-to-teacher ratio and increased operational costs. The district has spent nearly $5 million to support its food service program, which is expected to be self-sustaining.

The board discussed the implications of a potential downgrade in the district's bond rating, which could lead to higher borrowing costs and further strain financial resources. Dr. Hough reassured the board that measures are being implemented to address these issues, including partnerships with external consultants to benchmark against other districts and identify areas for improvement.

In addition to financial discussions, the meeting included personnel updates. The board approved the appointment of Phil Schultz as the new principal of Elkhart High School, effective July 1. The district is also seeing changes in administrative roles, with some positions being restructured to enhance efficiency and align responsibilities across schools.

Despite the challenges, Dr. Hough highlighted positive academic achievements, including a graduation rate of 94.5% and significant scholarship earnings for students. He expressed confidence in the district's ability to navigate its financial difficulties and improve educational outcomes, urging the community to support the necessary changes.

The board's discussions underscored the critical need for strategic planning and resource allocation to ensure the long-term viability of Elkhart Community Schools. As the district moves forward, the focus will remain on enhancing educational quality while addressing financial constraints.