District projects $1 million positive in revised 2024–25 budget after special‑education aid adjustment

Chris Blackburn, director of business services for South Washington County Schools, presented the district’s revised general‑fund budget and financial outlook for fiscal 2024–25.

Blackburn told the board the revised budget shows “about a $1,000,000 positive instead” of the roughly $5 million deficit projected when the original budget was adopted. He said revenues increased roughly 4% while expenditures rose about 2% compared with the original figures.

A primary driver of the revenue improvement is higher state special‑education aid. Blackburn said a change in accounting practice — using federal funds for certain tuition billing operations — increased reported special‑education expenditures for the prior year and therefore generated additional state aid this year; he reported an $8.1 million increase tied to special education state aid and related accounting adjustments. Blackburn and board members discussed that this approach produced a first‑year benefit and that future-year effects will be marginal. He said the district is conservatively reflecting a 95% proration on special‑education aid in state calculations.

Other details Blackburn provided: district enrollment revisions increased projected pupil counts (driving formula aid), general‑fund levy totals are about $88.3 million, and interest and third‑party billing adjustments added modest revenue. He said federal aids remain largely stable when pandemic‑era funds are excluded.

On expenditures, Blackburn said salaries and benefits remain the largest category; total spending increased about $6.7 million from the original budget, driven by salary/benefit updates (including negotiated stipends and longevity adjustments), higher contracted transportation, special‑education services and supplies tied to carryover commitments. He said projected unassigned fund balance will decline and estimated the district’s fund balance at about 15.8% at year end under the revised numbers.

Board members asked whether the revenue increase represented a long‑term improvement in the special‑education cross subsidy; Blackburn said the bulk of the change is an accounting shift with the largest benefit occurring in the first year and that future years will see only marginal gains. He also confirmed the state’s 2.74 formula factor for 2025–26 has been released and will help planning for next year’s budget.

Blackburn said staffing allocations to principals and 2025–26 budget development are underway; the board is scheduled to consider approval of the revised 2024–25 budget at the March 27 business meeting.

No formal vote on the revised budget occurred at this workshop; the presentation was informational.