Ashland School District reports preliminary $2.3 million shortfall for FY24; board outlines cuts and next steps

Ashland School District 5 reported a preliminary deficit of about $2.3 million for the fiscal year that ended June 30, 2024, district Finance Director Scott Witton told the school board Thursday.

Witton said the district’s expenses came in roughly $600,000 higher than projections in late spring, and the district absorbed a prior-year audit adjustment that reduced last year’s ending fund balance by about $236,000. “We overspent, about $2,300,000,” Witton said. He added that salary and benefit costs and higher-than-expected purchase-service payments were principal drivers.

Superintendent Joseph Hedrick and board members described a two‑track response: immediate spending controls and longer-term revenue work. Hedrick said the district had identified roughly $2.2 million in reductions already and was pursuing additional savings through attrition, tighter purchasing controls and review of staffing needs before filling vacancies. “We’ve got part of the team that’s focusing on plan B, which is how do we minimize expenses. I’ve been focusing as much as I can on plan A, which is how do we increase revenue,” Hedrick said.

Nut graf: The shortfall is preliminary and subject to final audit adjustments and late property‑tax receipts, but board and staff described it as a serious accounting position that requires both immediate operational tightening and advocacy for state resources. The district will pursue spending reductions, review use of purchase cards and seek legislative support while monitoring enrollment and grant outcomes that affect revenue.

Details and causes

Witton said general fund revenues were near earlier estimates overall, helped by an unexpected late state school fund allocation of about $287,000. But that was offset by weaker receipts in other categories (including lower pass‑through payments from the regional education service district) and higher expenses. He cited three main cost pressures: payroll and benefits (roughly $315,000 more than earlier estimates), higher purchase‑service and contracted special‑education payments, and an elevated substitute and overtime burden in May–June.

Witton flagged three specific items affecting the bottom line: (1) an unanticipated reduction in pass‑through funds from the Southern Oregon Education Service District (SOESD); (2) higher payments for outside psychology and speech‑language contracts; and (3) a large final purchase‑card statement in July that arrived after year‑end projections. On the last point, Hedrick and other board members recommended returning to a more controlled requisition and purchase‑order model: Hedrick said the district has “p‑cards out. We have 160 out. ... That gives us less budget and accounting control.”

Board and staff actions and next steps

The board and administration described actions already taken or planned: 1) about $2.2 million in reductions identified over the summer and through attrition; 2) a deliberate slowdown and review before filling vacated positions; 3) stricter oversight of purchase cards and approval layers; 4) controls on overtime and extra‑duty pay; and 5) continued state‑level advocacy with COSA (the Coalition of Oregon School Administrators) and other partners to seek additional funding.

Hedrick said the district’s cash position and pooled funds mean it can meet near‑term obligations, but the accounting position required urgent attention. He noted a board policy target of roughly a $3 million ending fund balance and said the district must both stop using reserves and begin restoring them.

Board members asked for reporting cadence and greater transparency for the public. Trustee Russell urged attention to the long‑running overtime and substitute costs, describing them as persistent drivers of unplanned spending. Hedrick and Witton said they will return with more detailed, line‑by‑line numbers and will consult auditors as the fiscal‑24 audit is finalized.

Ending

Witton emphasized the numbers are preliminary and subject to late property‑tax accruals and audit adjustments but said the district’s leadership has identified immediate reductions and will follow a two‑track strategy of expenditure control and revenue growth, including efforts to boost enrollment and to lobby for additional state funding.