Lafayette Parish School Board staff outline budget timeline and $0 concern areas as they prepare May 7 review

Lafayette Parish School Board finance staff presented a condensed budget timeline and a high-level overview of fiscal 2026 budget pressures and balancing steps Wednesday, telling the board they will bring detailed line-item reports at a May 7 meeting and adopt the budget for public review before a final vote on June 12.

The details matter because staff said local revenue shifts, planned construction debt, teacher-pay proposals and health-insurance funding changes together created multimillion-dollar shortfalls that the district is proposing to offset through a mix of reserves, revenue adjustments and staff consolidations.

Matt Duga, a finance staff member, told the board that after discussions with the superintendent the district consolidated a planned May 15 work session into the May 7 meeting and that the May 7 session will begin at 5 p.m. "On May 7 . . . we will present this in detail down to the individual line items, cost centers," Duga said. He said the board will be asked then to adopt the tentative budget so the district can post it online and at the district building for at least 15 days and advertise it in the newspaper as required.

Duga said the starting point was the fiscal 2025 budget rolled forward to fiscal 2026 and that cost centers submitted increases and decreases. "After a $1,200,000 cut to the district office call centers, staff was able to generate a small surplus of about $198,000 to start the process," he said.

Duga said staff project an increase in transfers to charter schools of more than $4.6 million because of charter expansion, and to offset that increase the district is planning to use $3.4 million in MFP mitigation funds reserved for this purpose plus an estimated $1.2 million in higher MFP (Minimum Foundation Program) revenue.

On planned construction debt, Duga said the district expects roughly $4.0 million in annual debt service after bond proceeds are used and reserves applied. "The rollover budget already had $3,000,000 . . . so we need an additional $1,000,000 to be budgeted," he said, a change that moved the projected balance further into deficit.

Duga outlined proposed personnel-related costs the superintendent has requested, including raising the starting teacher salary to $50,000. He said the net general-fund cost of that change beyond the district—s tax funding capacity is estimated at about $1,386,000, and that the salary index tied to teacher pay would raise instructional and administrative scales by about $1.3 million combined. He also said a proposed teacher-incentive program to reward academic gains in core subjects is estimated at about $3.0 million and that an administrative incentive program would cost about $400,000.

Other proposed costs included stipends for extracurricular activities (about $655,000) and a $91,800 annual general-fund contribution to a school operating under the ACE model, which Duga said is largely funded by a private donation.

To reduce the projected deficit, staff presented program and staffing changes they say will recover roughly $6.4 million. Duga listed a comprehensive review of school staffing, the planned closing of S.J. Montgomery, the reconfiguration of Lafayette Middle to Lafayette Elementary and attendance-zone adjustments as measures that together produce projected staffing and utility savings that reduce the shortfall to near balance for fiscal 2026.

On health insurance, the board was told the fiscal 2025 general fund transferred $6,639,000 to a self-funded insurance fund for an operational deficit. The superintendent said the district will convert that amount to employer-premium increases in fiscal 2026 but will not budget an additional projected $5,000,000 shortfall at this time. "We're putting $6,600,000 in. Even with that $6,600,000 the health insurance is saying that we're going to need an additional $5,000,000. I am saying that we're not gonna budget that at this time," the superintendent said, adding that staff and consultants will return with recommendations.

A board member expressed concern about making the $6.6 million a recurring general-fund burden. "I'm a little bit concerned . . . that we are labeling the $6,600,000 as converted employer premium increases. That simply means that the school, the taxpayer, is taking the burden on this," the board member said, and urged the board to view the change as temporary until longer-term fixes are implemented.

After the presentation, the board approved consent agenda items 3.1 through 3.7 in a single vote. Board member Mr. Bajoran moved approval; Mr. Lejeune seconded. The chair asked for public comment and, hearing none, called the vote. The clerk recorded the motion as carried.

The special meeting adjourned; the board's regular meeting was scheduled for 5 p.m. Wednesday.

Notes: The district referenced use of "MFP mitigation funds" (Minimum Foundation Program mitigation) and a private Pew Foundation donation for a program contribution. Several dollar amounts were presented as estimates by staff; the board was scheduled to receive detailed, line-item reports at the May 7 meeting.