A district financial analysis presented to the Gadsden Independent School District Board estimated that the district’s declining average membership could reduce State Equalization Guarantee (SEG) funding by roughly $5.9 million–$6.0 million in current dollars, a loss the presenter translated to about 68 average staff positions based on the district’s average salary plus benefits.

The consultant (presentation attributed in the transcript to a district analyst) reviewed membership trends from 2019 through recent counts, used that trend to forecast 2026 average membership and substituted the estimate into the SEG calculation. The presenter said last year’s internal beginning‑of‑year count and the fortieth‑day count were close, and this year’s internal count (about 11,002.5 in the presenter’s estimate) fell near the lower band of the forecast. The result, the presenter said, reduces the SEG in current dollars to roughly $173.5 million from $179.4 million — a decrease of approximately $5.9 million.

Superintendent Dempsey framed the analysis as a call to prepare while the district still has reserves and options. Dempsey said staff are already reassigning roughly 15–20 employees to campuses with higher need to avoid layoffs and protect jobs where possible. He proposed several steps for the board to consider, including offering a one‑time financial incentive for employees who choose to retire as a means to reduce staffing costs, targeted school consolidations (examples discussed included formalizing consolidation steps for Loma Linda and Anthony and considering the status of Berrendo/Bridal‑area campuses), and earlier use of vacant facilities (e.g., reassigning pre‑K or other programs to underused buildings) to optimize space and operations.

Board members asked for additional analyses before any decisions: an inventory of central‑office staffing and administrative costs; the projected operational impact (class sizes, program quality) of any consolidation; maps and enrollment projections showing where in‑district transfers and out‑of‑district enrollments are occurring; and cost estimates for demolishing or repurposing underused properties (Mesquite campus was discussed as a likely demolition candidate due to sewer costs). Dempsey and staff agreed to return with detailed scenarios showing programmatic impacts, staffing breakdowns and potential savings prior to formal consolidation votes.

No consolidations, closures or mandatory layoffs were approved at the meeting; board discussion centered on options and requested follow‑up analyses to inform formal decisions.