Caddo Parish proposes balanced $426 million general fund, cites enrollment losses and end of ESSER aid
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Summary
District staff presented a draft 2025–26 general fund budget that leaders say is balanced without dipping into reserves, while officials warned ongoing enrollment declines and the end of federal ESSER funding will continue to pressure future years.
Caddo Parish School Board staff presented a draft 2025–26 general fund budget on May 27, 2025, showing approximately $426 million in revenue and expenditures and an anticipated year-end fund balance near $162 million.
The proposal, presented by Jeff Howard, staff member and budget presenter, aligns spending to district priorities and includes step increases for qualifying employees, retention of the middle-school math block, and start-up costs for a modified block schedule at high schools. "This draft does show a balanced budget with no deficit spending," Howard told the board, adding the draft does not rely on using savings or fund balance to operate.
The district projects continued enrollment declines, which staff said are the primary revenue pressure. Howard said the district receives an average of $5,500 per student from the state’s Minimum Foundation Program and is budgeting to lose about 750 students for the 2025–26 year, after a loss of roughly 850 students the current year.
Howard also told the board that the end of ESSER (Elementary and Secondary School Emergency Relief) funding has shifted recurring costs back into the general fund. He estimated indirect-cost revenue tied to federal programs would drop from about $15 million this year to roughly $3.5 million in a post‑ESSER structure, noting the district used ESSER to fund numerous programs that are now recurring costs.
Board members asked for clarifications on several line items. The budget document shows the district levies just over 72 mills in property taxes overall, with 55 mills supporting the general fund; Howard said property-tax revenue was budgeted flat for next year. Sales tax receipts were described as uncertain, with recent months showing small up-and-down fluctuations.
The draft also reflects a variety of program choices intended to protect instruction and student supports: targeted pilots for chronic absenteeism, a calming academy at Summer Grove Elementary, and braided Title I funding to sustain priorities previously funded by ESSER. Howard said the timeline for the budget process includes another work session June 3 focused on special revenue and capital funds, a public hearing and approval by the board on June 17, and a July 1 start to the fiscal year.
Board members and staff agreed no legislative action was scheduled at the May 27 session; the meeting was informational and further meetings were planned to refine numbers and answer follow-up questions.
The board flagged several items for follow-up, including a line-item explanation of reserves and an accounting breakout for major program shifts from ESSER to the general fund. Howard told the board staff would compile requested answers and circulate them later in the week.
