Columbia Heights board adopts revised 2024–25 budget, projects general fund balance within policy

The Columbia Heights Public Schools Board voted April 22 to adopt a revised budget for fiscal year 2024–25 that the district projects will move the general fund into the district’s fund-balance policy range.

Director Brian Hennekens presented the revised budget at the meeting and at length at the April work session. He summarized key fund-level projections: the general fund revenues of roughly $67.0 million against expenses of about $62.5 million, producing an anticipated general-fund balance near $13 million across restricted, assigned and unassigned categories and an unassigned general-fund balance projected at roughly 12.5 percent of expenditures if current assumptions hold.

Hennekens walked the board through major funds and assumptions: the unassigned general fund (revenues just under $47 million, expenditures just over $43 million in the presented projection), the food-service fund (revenues and expenses near $3.2 million; the district plans capital replacements to manage a statutory cap on that fund’s balance), the community-education fund (adjustments targeting a small positive balance after several deficit years), the capital projects fund for levy-funded deferred maintenance and a one-to-one technology initiative (projected balance about $900,000), and smaller funds including debt service, dental self-insurance and the OPEB trust.

Hennekens told the board the revised budget assumes no change in the district’s required contribution rates for next year in areas such as dental premiums; the dental fund projection shows a modestly stronger position and the district plans to keep premiums stable for 2025–26. He said the district is monitoring the OPEB trust, noting market volatility but overall a healthy trust balance.

Board discussion focused on two risks that could reduce the projected unassigned balance: (1) uncertainty about state compensatory-aid timing and amounts and (2) potential state-level “age shifting” that can defer portions of state aid from one year to the next. Hennekens said if the state does not resolve the compensatory-aid issue, the district would have a shortfall of about $3.7 million that—if not replaced by state action—would reduce the unassigned fund balance into roughly the 7–8 percent range and could require deeper cuts the following year. Board members emphasized the value of the revised fund-balance policy and the board’s recent decision to increase assigned fund categories to reduce the need for cash-flow borrowing and provide capacity for unexpected state or enrollment changes.

After discussion the board adopted the fiscal 2024–25 revised budget by roll-call vote. Director Hennekens will direct administrative follow-up to record the changes and to report back on the status of the district’s fund balances and any movement of state aid or new legislative action.