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Francis Howell officials present budget amendment and warn of multi‑million state revenue shortfall
Summary
District finance leaders recommended a $457,003.14 expenditure amendment and warned that a governor’s proposal to pause a planned increase to the state adequacy target would reduce future revenue for the district by roughly $3.2 million annually, shifting long‑term fund‑balance projections downward.
The Francis Howell R‑III Board of Education received a finance update Feb. 20 that included a recommended $457,003.14 increase in expenditures and new projections showing the district could lose about $3.2 million a year if a planned increase to the state adequacy target does not occur.
The district’s director of finance, Julie Walsh, told the board the recommended amendment reduces the estimated fund‑balance percentage for June 30 to 29.54% from 29.78% — a 0.24 percentage‑point change. “The total recommended increase is $457,003.14,” Walsh said.
Walsh said language in the governor’s State of the State address would keep the adequacy target flat next year instead of increasing by roughly $385 per weighted average daily attendance. “That additional $385 per WADA would have generated approximately $6,400,000 for Francis Howell,” she said. Because the district budgeted conservatively for only half of that expected increase, Walsh said the district’s modeled revenue loss is approximately $3,200,000 beginning in FY 2026 and continuing forward.
The finance presentation also flagged other potential legislative impacts, including an estimate derived from Saint Charles County data that Senate Bill 190 could reduce future local revenue by about $750,000, though Walsh emphasized that outcomes will depend on final legislation.
Walsh and district staff offered several recommendations to address the downward trajectory shown in multi‑year projections: perform a staffing analysis to identify appropriate staffing levels; analyze benefits to ensure sustainable premiums; consider using bonds to fund capital needs instead of operating funds; and evaluate levy or debt‑service transfers. The presentation included an operating‑trajectory graph projecting the district could fall below the board’s 15% minimum fund balance by FY 2028 without changes.
Board members discussed timing and next steps for budget work. Walsh said revenue assumptions and the full revenue picture will be brought to the board in coming weeks as part of the budget development calendar that runs through May and culminates in final budget approval prior to July 1.
The board later approved the finance and operations report as presented during the meeting’s consent and business items.
