Caledonia Community Schools is preparing for significant budget adjustments as it approaches the end of the 2023-2024 fiscal year. During the May Regular Board Meeting held on May 23, 2024, district officials outlined plans to finalize the current budget and adopt the budget for the 2024-2025 school year in June.

A key focus of the meeting was the recent state revenue conference, which revealed a downward revision of expected revenue collections by over $160 million for the current fiscal year. This adjustment poses challenges for the district, as both the governor's and the house's proposed budgets for the upcoming year would exceed available funds, necessitating further cuts to meet the state’s balanced budget requirements.

Looking ahead, the district anticipates a modest revenue growth of approximately 2% for the 2024-2025 fiscal year, a significant decrease compared to previous years. This limited growth, coupled with the expiration of COVID-related funding, means the district must make tough decisions to align expenditures with available revenue. Current projections indicate a budget shortfall of nearly $4.7 million if no changes are made.

To address this gap, the administration is tasked with developing a plan to cut approximately $2.7 million from the budget. This plan will be presented to the board in June, with the goal of maintaining a minimum fund balance of 13%, as mandated by board policy. The district is currently estimating its fund balance to be between 14.4% and 16.1% by the end of the fiscal year, but without necessary cuts, this could drop to 8.9%.

In addition to budget discussions, the board also reviewed updates on ongoing projects, including the Kettle Lake Playground, which is set to be completed next spring. The playground design aims to be accessible, featuring ground-level units and swings, although some elements may still pose challenges for all users.

As the district navigates these financial hurdles, it remains committed to transparency and community engagement, with further discussions scheduled for the next board meeting. The outcomes of these budgetary decisions will have lasting implications for the district's operations and its ability to serve students effectively in the coming years.