District outlines $2.9 million shortfall and proposes program consolidations, virtual school and daycare changes

Adam Steele, Chief Financial staff, and Dr. Billy Berry presented budget amendments and a projected local operating shortfall for the 2025–26 school year at the April 7 meeting and outlined proposed reductions to balance the budget.

Steele reviewed recent budget amendments (state, federal, capital and special revenue adjustments) and highlighted larger state allocations received this month, including average-daily-membership growth funding and exceptional-children headcount adjustments. He also described a state-funded “plasma games” (gamification STEM) grant the district has applied for and will present for acceptance in May.

On operating needs, Dr. Berry said the district expects to operate partially from fund balance for the third consecutive year and that the 2025–26 scenario requires about $4.5 million to maintain planned operations. He said the county is expected to provide about $1.6 million based on CPI increases, leaving a local shortfall of about $2.9 million.

Levers presented to address the shortfall included:

- Allotment reductions through attrition: principals and staff worked through allotments that could reduce 12 teacher positions (through retirements/nonreplacements) and yield about $990,000 if targets are reached. - Central-office reductions: repurposing or reducing several director/coordinator positions to save about $660,032. - Charging child nutrition indirect costs and reducing student-supply allotments (from $80 to $70 per student) to save roughly $458,000 combined. - Reducing building-improvement funds by half (approx. $124,500) and eliminating certain nonessential software subscriptions (saving ~ $286,000 when shifted to textbook funds).

The presentation also identified two program-level changes the district proposed to address recurring deficits:

- Closure/consolidation of the district-operated daycare program for infants and consolidation of sites for the 2025–26 school year. Staff said only 57 employees use district daycares and 22 employees would be affected directly; the daycare program has operated with recurring deficits and was more than $400,000 in the red this year. - Closure of the ISS Virtual Academy at the end of 2024–25 and reallocation of the academy’s five full-time teachers and other staff to other district positions. Dr. Berry and Woody said virtual instruction for students would remain available through existing district virtual programs (iAcademy or VIS), and that the academy principal could be moved to a coordinator role to oversee virtual instruction. Staff estimated closing the virtual academy would save more than $500,000.

Dr. Berry said the district’s prior year cuts (end of ESSER funding) already reduced payroll and services, and that further deep reductions in transportation, assistant principals or teachers would be highly disruptive. He urged a mix of attrition, administrative reductions and program consolidation to reach the targeted savings.

Board members asked questions about impacts to class sizes, teacher tax/benefit calculations, and the fairness of localized reductions. Members praised staff for data-driven analysis and emphasized the impact of personnel reductions on students. Several board members said they would press commissioners for additional local funding; staff said the county allocates funds based on its own budget process and that the district must plan to local funds available under the county’s CPI-based allocation.

Ending: Staff recommended a package of allotment adjustments, central-office reductions and program consolidations that together would meet the projected $2.9 million shortfall; board discussion continued and no final decision was made on April 7.