Laconia schools face near $3 million funding gap; superintendent proposes staff reductions, reserve use and pre-buys

LACONIA, N.H. — Superintendent Champlin told the Laconia School District Board on March 4 that the district faces a significant budget shortfall driven by decreased revenue and rising fixed costs, and outlined an initial package of proposed reductions and stopgap measures.

Champlin said the gap arises from two pressures: increased fixed costs (primarily salaries and benefits) and a decline in certain revenues (including a drop in special-education reimbursements and building aid). He described an overall delta — the combination of lower revenue and higher cost — that the district must address before the final 2025 budget is set.

To close the gap the superintendent described three categories of remedies: staff reductions and holding replacement positions at lower salary steps where vacancies occur; one-time pre-purchases using anticipated year-end fund balance for items such as technology; and drawing from specific reserve accounts (stabilization, health, special education and facilities) to reduce next year's budget pressure.

Champlin listed several positions proposed for elimination in the initial reduction package; among them were a literacy coach, a districtwide curriculum coordinator, a Laconia High School special-education position that was budgeted but not filled this year, and a floating nurse position. "This is not an educational cut this is not this would be good to do this is an unanticipated fiscal reduction," Champlin said, describing the reductions as responses to the fiscal shortfall rather than changes in educational priorities.

Board members and administrators discussed the floating nurse role at length. Nurses on staff had previously advocated for the floating position to support medically complex students; administrators said some earlier high-need cases have stabilized and the district believes current school nurses can cover needs, but acknowledged nursing shortages and said they would re-advertise if new needs arise.

Champlin also described the district strategy of hiring replacements at lower steps when vacancies occur; he cited a forthcoming Laconia High School math hire as an example and said the district expects savings when hires come in below top-of-scale budgets. He said the city manager's draft support and the tax-cap environment partially constrain local revenue growth.

The superintendent presented the option of using approximately $1.8 million from reserve accounts combined with personnel and nonpersonnel adjustments to produce a near level-funded 2025 budget in the first-pass plan. Champlin stressed this is a work in progress and the district will finalize reductions after more input at upcoming budget personnel meetings and building-level sessions.

Board members requested multi-year forecasting and cautioned against one-time fixes that could deplete reserves needed in future years. Champlin said the district will balance short-term remedies with caution about sustainable long-term effects and will return with updated figures following building-level reviews scheduled later in March.

Speakers: Superintendent Champlin; Business Administrator Cleary; Board member Anderson; Facilities Director Crusoe.