District finance update: enrollment dip, MFP adjustment and federal funding uncertainty prompt staffing caution

St. Tammany Parish School Board finance staff reported on March 13 that revenues and expenditures were currently in line with the adopted budget as of Feb. 28, but discussed an enrollment decline and uncertainty about federal program funding that are prompting staffing and program caution.

"I provided you with a written budget update as of February 28. In the interest of time, I'm not going to go over it in detail but I can tell you that our actual revenues and expenditures are currently in line with the budget so we don't need to do any revisions at this time," Miss Prevost said. Board members pressed for additional detail on enrollment and the impact on the Minimum Foundation Program (MFP), Louisiana's school funding formula.

Prevost said the district had seen an enrollment change in the February count "between 4 and 600" students and warned that the MFP adjustment planned for April will reduce district payments for April, May and June to reflect the February count. "They will adjust the MFP for the October and then February counts...it's going to be down," she said. The district did not provide a finalized dollar amount at the meeting; Prevost said staff would supply updated figures.

Committee members raised concerns about possible federal funding changes. District leaders described work underway to reduce dependence on federal grant-funded positions should program funds change. During discussion, staff said they were not filling roughly ten positions for the 2025–26 school year pending clarity on federal program funding and that some federally funded coaching and PD positions are being reassigned or held. "We're in a holding pattern," a district administrator said, adding that leaders are trying to avoid creating ongoing positions that would later require general-fund support if federal funds are not available.

Officials also noted a lawsuit filed the morning of the meeting concerning a proposed federal shift of IDEA funds; staff said the litigation had put that plan on hold as of the meeting. Committee members emphasized the district's reliance on guidance from the Louisiana Department of Education for how the state would receive and disperse any changed federal funding.

Why it matters: enrollment changes and federal funding shifts can reduce state and federal revenues and force districts to alter staffing and services. Financial staff said they are preparing for lower payments in April–June and are reviewing staffing and program assignments to limit general-fund exposure.

Board staff said they will provide updated enrollment-to-dollar impact calculations to the committee when available.