Finance committee to recommend committing $500,000 for new ERP as budget pressures and cyber‑charter costs rise

Joni, the district’s finance staff member, presented a preliminary budget update to the finance committee and urged department heads to return proposed expense reductions for the 2025–26 budget. She reported a healthy fund balance but said the district faces structural pressures, including higher projected health‑insurance costs and a sharp rise in cyber‑charter tuition payments.

“We are in a very, very healthy fund balance, sitting here,” Joni said, but she cautioned the committee that the district must still produce a balanced budget by June. Joni presented a preliminary 2025–26 general fund figure of about $91,000,000 as a working number and explained that the district would use a mix of cost reductions and, if necessary, fund balance to close any deficit.

Joni also told the committee she had observed a substantial year‑over‑year increase in cyber‑charter costs. “Cyber charter has increased by $1,500,000,” she said, and she cited a specific example in which payments to one charter rose from $1.3 million to $2.4 million as enrollment increased (regular education enrollment in that charter jumped from 62 to 107; special education from 15 to 36).

During discussion the committee questioned whether parents’ choices, charter accountability or program rules explain the enrollment shifts. Committee members asked administration to invite staff familiar with charter enrollment data (district officials said they would ask the student services office and recommended inviting Dave Peters to a future meeting) to better understand whether the increase represents new students or transfers out of Keystone.

On committed spending, the committee discussed the new ERP (enterprise resource planning) / business‑office software that district staff intend to implement beginning July 1. Administration said the ERP project will be paid over a two‑year rollout and asked the committee to recommend that the board commit $500,000 from fund balance to ensure the project has budgeted funding. Committee members expressed support and agreed to recommend that the full board commit the funds at the February meeting.

Committee members also discussed other revenue and tax options, grant pursuit (including PSBA and PCCD grants), and facility‑project prioritization. Members asked administration to continue grant searches, provide a prioritized list of capital commitments, and to prepare specific proposals for committing funds so the board can decide how to allocate the district’s near‑term fund balance.

Ending: The committee agreed to recommend committing $500,000 for the ERP rollout to the full board and asked administration to return with refined budget reductions, updated health‑insurance projections, and charter enrollment data at the next finance meeting.