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L'Anse Creuse board reviews midyear budget amendment showing a $7.6 million shortfall
Summary
District staff presented a midyear amendment for the 2024–25 budget projecting a $7.6 million shortfall driven by reduced revenues and higher expenditures tied to restricted funds and grant changes; administration said the amendment does not yet include staffing cuts for 2025–26.
Kathy (staff member) presented a midyear amendment to the L'Anse Creuse Public Schools 2024–25 budget that projects a $7,600,000 shortfall if current revenue and expenditure trends continue.
The amendment compares the original 2024–25 revenue projection of $144,900,000 with a revised projection of $144,065,000 and shows higher expenditures that together produce the projected shortfall. Kathy said the figures are projections at this point in time and noted several “wild cards,” including state funding assumptions, grant expirations and rising retirement and health-care costs that affect the district's fiscal picture.
Board members asked for clarification about whether the amendment incorporates spending cuts or staffing changes for 2025–26. Kathy and another staff member said the amendment is a midyear accounting of 2024–25 and does not itself implement cuts for next year; cost-reduction conversations for 2025–26 are ongoing and will be addressed in upcoming budget workshops.
Board members and staff discussed restricted versus unrestricted revenue. Staff explained some revenue changes were in restricted grant categories that do not flow into general discretionary funds; when those grant supports end, related services and expenses can shift into the general fund, increasing expenditures there. Kathy also said the district remains solvent overall and retains a multi‑percent fund balance, but the 2024–25 budget as presented is operating with a deficit (revenues lower than projected expenditures) and will require additional actions or revised assumptions to close the gap.
Several trustees urged administration to continue working with principals, program leads and the board to identify options before June, the usual final amendment and budget-adoption timeframe. Trustees also pressed for clearer communications to the public about the difference between a single‑year deficit budget and the district’s overall fund balance.
Administration said it will return with additional detail at future budget workshops and with a June amendment that reflects year‑end results and any required adjustments.
