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Ritenour finance staff outline budget outlook: surplus carried, ESSER funds ending and new operating costs ahead
Summary
District finance staff reported a $4.3 million operating surplus last year, noted ESSER funding has been drawn down and outlined anticipated revenue and expenditure changes for next year including the first annual payment on certificates of participation and projected medical insurance increases.
District finance staff presented an initial budget planning update that outlined last year's results, the current-year outlook and major drivers that will affect next year's budget.
Key figures: The presentation reported a $4.3 million operating surplus at the end of the prior fiscal year. The district also received $11.8 million in ESSER federal funds in earlier years and an additional $4 million asset payment this fall; ESSER funding will not recur next year. Staff said absent the asset payment the district would face an operating deficit for the current year.
Revenue outlook: Local revenue is expected to be roughly flat amid increased property-tax protests and limited new-construction growth (staff estimated roughly $90,000 from new construction). State per-student advocacy targets are projected to rise from $6,760 to $7,145 per student; if weighted average daily attendance is flat, staff estimated about $2.2 million in additional state revenue but noted this depends on final appropriations. Federal ESSER funding will end, and some one-time asset payments have been spread across fiscal years.
Expenditure drivers: Salary increases are forecast to be the primary recurring expenditure growth, and staff advised that medical insurance costs could increase roughly 11% (a midpoint estimate of projected 9–13%). Next fiscal year will include the first annual payment on the certificates of participation used to finance the facility acquisition, estimated at about $600,000 per year for 15 years; that payment comes from operating funds. Other rising costs noted were property insurance, utilities and custodial support tied to the new facility.
Staffing and facilities: For the newly named Ritenour Center for Educational Excellence, the district anticipates adding custodial staff and 2–3 child-nutrition or preschool positions tied to expanded services; some international-welcome-center roles will move from the existing site. The district said it does not recommend additional administrative positions at this time but will adjust staffing if enrollment growth requires it.
Process and timeline: The superintendent and finance staff described a multi-month budget process leading to preliminary budget presentations in April, revisions in May and a final budget adoption in June. Staff emphasized monitoring the impact of a statewide senior-citizen property tax freeze that takes effect this year; an estimate from St. Louis County may clarify impacts closer to November.
Next steps: Administration will return with more detailed revenue and expenditure estimates as the budget process advances and will present proposed FTE changes for board consideration if needed.
