Davis School District projects $782 million in revenues, schedules tax and budget hearings amid enrollment decline
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Summary
Finance staff told the board the 2024-25 revenue estimate is about $782 million, with expenses near $778 million, leaving roughly $8.9 million to assign; staff signaled a proposed tax increase, multiple public hearings and a projected enrollment decline of about 900 students next year.
Nate Lee and Tim Loeffel presented an overview of the district's fiscal picture for 2024'25, telling the Board of Education the district anticipates about $782 million in revenues and roughly $778 million in expenses, leaving approximately $8.9 million to assign to reserves and the economic stabilization account.
The presentation laid out fund-level goals: maintaining an economic stabilization reserve at about 5 percent of the budget, building an assigned fund balance between $6 million and $9 million, and preserving three months' worth of insurance reserves. Staff told the board the proposed starting teacher salary for next year would rise to $63,191.
Capital plans are funded largely by bond proceeds, with staff noting $6 million earmarked for large maintenance projects and $5.5 million for instructional technology refreshes (student device renewals). Debt service was described as manageable: the district's debt capacity rose to about $3 billion while currently running near 20 percent of capacity.
Finance staff flagged enrollment as a longer-term fiscal pressure. They said births in the county have declined in recent cohorts and that the district projects a drop of about 900 students next year; staff attributed the larger falloff relative to births to alternative schooling choices, including charters, homeschooling and online options. The presenters discussed the need to reduce the district office footprint and administrative positions in proportion to school-level staffing changes as enrollment falls.
Timing and public process were reviewed: the draft legal budget was to be posted for public inspection the day after the presentation; a budget hearing for the current-year legal budget was scheduled for June 3 at 6 p.m.; the district will hold a truth-in-taxation hearing for next year's proposed budget on Aug. 19; and state law requires adoption of a final budget by Sept. 1. Staff emphasized they will tie budget additions to the district strategic plan.
Board members asked about capital prioritization, facility condition assessments and the operating cost of maintaining schools (staff estimated roughly $1 million to run an elementary building). No formal vote occurred during the workshop; staff will post materials online and return for formal hearings and possible adoption at later meetings.
