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Board approves budget amendment; finance chief says fund balance remains near pre-COVID levels
Summary
The St. Joseph School Board approved a budget amendment that reduced the anticipated spend-down of reserves and left the district's fund balance close to historical levels; staff warned ongoing personnel costs remain the principal fiscal pressure.
The St. Joseph School District Board of Education approved a budget amendment that reduces the anticipated draw on reserves for the fiscal year.
District finance lead Dr. Segars told the board the original budget had planned to spend down reserves by about $3.1 million; the amended budget lowers that spend-down to approximately $952,000. The projected fund balance as a percentage of the budget falls from an earlier estimate of 27.56% to about 25.26% because the overall budget grew, Segars said.
Segars outlined drivers of the change: salaries and benefits are up about $5.1 million from the previous year, partly because of the board-approved $27.50 pay increase; capital spending rose in part for HVAC work at Central High School; and contracted special-education services and repairs are higher. He noted the district remains below fiscal year 2024 expenditures by about $1.1 million.
On revenues, Segars said increased assessed valuation and the property rollback calculation improved tax receipts, although the district is still carrying a loss in average daily attendance (ADA) compared with pre-COVID levels.
Segars reminded the board of the practical need for a healthy fund balance to manage cashflow: in a district of this size, he said, “you have to have at least a 14% fund balance to make that payment in the month of November” and recommended a comfortable range of 22% to 26% for districts of similar size.
The board voted unanimously to approve the amendment. Segars also presented January financials and a report on the district’s health care trust and benefit plan performance; trustees asked for further updates next month on options related to the EPO health plan.
