Ashland School District reports $550,000 general-fund shortfall; board approves OSEA agreement

The Ashland School Board was told Thursday that the district’s fiscal 2024 general fund closed “in the negative” by about $550,000 after lower-than-expected property-tax collections and higher end-of-year expenses, and the board approved a tentative three‑year collective bargaining agreement with the district’s classified employees union.

Director of business services Scott Whitman told the board that closing entries for July and August showed a property-tax collection lag that reduced revenue by about $300,000 and that several expense items—substitute coverage, contract services for psychologists and speech‑language pathologists, and vacation and overtime payouts—came in higher than projected. “The general fund, as you see at the bottom there ended up in the negative this year by about $550,000,” Whitman said.

The deficit is recorded for the June close but, Whitman said, the state funding formula and prior‑year adjustments should partly address timing gaps in later reporting. “Since property taxes are part of our state school fund formula, that deficit this year will be made up in the current year,” he said, describing the mechanics by which a lower collection this year modifies the district’s state allocation later.

Why the shortfall occurred: Whitman and board members outlined three main drivers in discussion—(1) the pace of property‑tax payments collected by Jackson County, (2) higher than expected invoicing for contracted services and substitute coverage that arrived after the fiscal year closed, and (3) a spike in end‑of‑year payroll liabilities such as vacation payouts and overtime. Whitman said some of those items were “not on my radar” in June and committed to improving mid‑year tracking and projections.

Board members and district staff described immediate management steps already underway: slowing automatic re‑posting of positions and reviewing hiring before vacancies are filled, tightening use of district purchasing cards, pausing overtime where possible, and closer monthly reconciliation of payroll and contract services. Superintendent Joseph Hatrick told the board that many of the measures had already been initiated and asked for community patience while the district implements tighter controls.

At the same meeting the board voted to adopt a tentative agreement with the Ashland classified employees represented by OSEA. OSEA reported broad approval among its worksites: OSEA bargaining representative James Johnson said the union collected 76 ballots and that “75 of those were affirmative, only 1 against.” The board then moved and approved the district’s ratification of the negotiated contract for 2024–27.

Board members framed the OSEA agreement as part of a dual approach—stabilize finances while maintaining labor cooperation. Director Dan Ruby said the union “understood the position we’re in and has granted trust and hope in the district that we can have a positive impact on our budget.” Ruby also urged coordinated legislative advocacy to address structural funding issues at the state level, asking the community and district partners “to commit to advocating legislatively” for changes including revision to the continuous service level formula and relief on unfunded mandates.

For transparency, the district will report an updated official enrollment count in October (preliminary enrollment reported at 2,552 students as of the meeting) and provide revised year‑to‑date financials as September payrolls are finalized. Whitman said the September payroll run and updated staffing data will enable clearer multi‑year projections going forward.

Actions and next steps included: the board’s approval of the OSEA contract, ongoing internal budget controls (hiring freezes/reviews, p‑card restrictions, tighter overtime rules), and a follow‑up review of revenues and spending at upcoming meetings.