Marshall Public School District board approves revised 2024-25 budget as fund balance forecast falls

At its meeting, the Marshall Public School District Board of Education approved a revised 2024-25 budget that projects the district's general fund balance will fall from about 21% to roughly 16.85% by year-end, Sarah Pritchard, a staff member, told the board.

The revised forecast matters because the general fund pays daily operations including salaries and benefits; Pritchard told the board the district's minimum required fund balance is 8% under district policy, and that the current projection would leave the district with less cushion than it has had. Rick Purington, president of the Marshall Education Association, had urged the board earlier in the meeting to consider the district's finances while noting the general fund remained "healthy, over 20% district fund balance."

Pritchard reviewed the numbers that produced the larger shortfall. She said salary projections produced a net decrease of about $40,000 from previous estimates, and the district increased its long-term facilities maintenance (LTFM) budget by about $185,000 to cover completed projects. On the revenue side, Pritchard said general education aid projections rose by roughly $300,000 and special education revenue projections increased by about $135,000. She also said the district recognized additional ALC transportation funding and higher-than-expected interest income on deposits.

Despite those revenue upward adjustments, Pritchard said the district's revised estimates increased expenses by about $176,000 while revenues increased by about $1.3 million compared with the original budget projections. She told the board the district had expected a deficit of about $766,000 in the preliminary budget but that her revisions showed a larger shortfall of roughly $1.1 million; she later noted that the general fund deficit figure, after other adjustments, was about $1.3 million.

Pritchard translated percentages into dollars to show scale: at a 21% fund balance the district held about $10.7 million in reserve, roughly two and a half months of operating expenses. She told the board that the district spends about $4.2 million a month in salaries and other costs and that falling to the policy minimum of 8% would leave the district with roughly one payroll's worth of cushion. She said continued increases in insurance premiums and expected settlement of labor contracts would make planning for fiscal 2026 difficult without policy changes or additional revenue.

Board members and committees had already been discussing options. Earlier in the meeting the executive governance committee discussed staffing at a CTI center and the budget, and Pritchard and board members noted the "likely need for an operating levy to go out to voters in the reasonably foreseeable future," a topic the board said it will continue to consider.

Votes at a glance

- Approval of the agenda: motion by Jeff, second by Sarah Runti; outcome: approved (vote tally not specified). - Approval of the consent agenda: motion by Sarah Brink, second by Jeff; outcome: approved (vote tally not specified). - Approval of early retirement incentive for four teachers (Brenda; Nona; Holly; Cindy): motion by Sarah Runtje, second by Sarah Brink; outcome: approved (vote tally not specified). The board thanked the retirees by name during the meeting. - Approval of the revised 2024-25 budget: motion by Jeff, second by the chair; outcome: approved (vote tally not specified).

The board did not identify specific program cuts or dollar amounts tied to particular services at the meeting; Pritchard said staff are examining likely reductions and that contract negotiations and insurance cost pressures will influence next year's planning. She recommended maintaining a higher-than-minimum reserve if possible to preserve operating flexibility.