District finance review: investment laddering, rising insurance and steady teacher pay noted; board accepts investment report

The New Albany-Floyd County Consolidated School Board’s Board of Finance on Jan. 13 reviewed the district’s investment policy and financial indicators, heard staff analysis of recent changes in revenue and expenses, and voted to accept the investment report.

Chris Street, the corporation treasurer and district CFO, told the board the district’s investment policy restricts holdings to insured depository institutions, certificates of deposit (CDs), U.S. Treasury instruments and similar low-risk vehicles; it does not permit equities or cryptocurrencies. He said the district established a laddered series of CDs (six months, one year, 18 months and two years) to lock in higher short-term yields after interest rates rose in 2022–23.

Street reviewed recent interest-rate and earnings context: the federal funds rate rose to roughly 5.5% in mid-2023 and has since drifted lower to approximately 4.25%–4.5%, which affects future interest earnings. He said the district had moved some cash into CDs and holds operating deposits at German American Bank and TrustIndiana; the district also has deposits with Everwise (referenced as a teachers’ trust vehicle). The board unanimously accepted the investment report (vote recorded 7–0).

Key budget and staffing numbers discussed Street gave figures used in planning and bargaining discussions: the district’s starting teacher salary was stated as $50,200, the average teacher salary around $65,100 and the required minimum teacher starting salary of $40,000. He said the district met the state’s 62% guideline for the share of state revenue spent on teacher salaries and benefits (district reported around 65%). Classified and bus-driver pay steps were also highlighted: the starting bus-driver rate was cited around $27.67 per hour and classified staff received a 50¢ step increase plus a step on the pay scale in January.

Health insurance and other cost pressures Street said the district increased corporation health-care contributions by 10% in the most recent cycle, describing that change as roughly $900,000 in total increased cost and estimating roughly $600,000–$650,000 of that impact fell to the education fund. He said nationwide insurer withdrawals (citing Humana’s market exit) and broader health-cost trends are driving district-level cost pressure. Separately, property and casualty premiums rose (Street cited an approximately 11% increase, near $200,000 in budgetary impact on the district this cycle).

Federal relief and fund rolloffs Street summarized the phase-down of ESSER (Elementary and Secondary School Emergency Relief) funding and its ongoing budget impact: over the recent multi-year cycle the district received ESSER and related federal grant funding (Street referenced approximately $20 million over the ESSER cycle, and estimated district recurring annual federal grant funding without ESSER at about $10 million). The district rolled a textbook/curricular fund balance into the education fund at year end (the transcript referenced about $1.8 million moved into the education fund).

Enrollment and capital planning Street said the district’s enrollment was “down about 100 to 130 pupils” in the fall count (roughly a 1% decline) and reminded the board that spring ADM (average daily membership) count occurs Feb. 2. He and the board discussed long-term demographic trends and the need for periodic demographic studies. On capital needs, Street said multiple facility systems are approaching end of useful life and the district’s Schmidt study will inform planned large projects; he warned that the operations fund has been drawn down as projects resume after the ESSER period and that bus, insurance and construction inflation have increased capital and operations costs.

Board action and next steps After the presentation the board moved to accept the investment report; the vote was recorded as unanimous (7–0). Street said staff will continue to monitor insurance markets, bargaining implications for pay scales, and capital project timing, and return to the board with further budget and project recommendations as needed.

Direct quotes from the meeting "We moved some money into CDs, just to lock in some higher rates," Chris Street said, explaining the district’s laddered approach to CDs.

"It was a 100 and it was about 1%," Street said when a board member asked how many students the district lost in the fall count.

Context The finance review included state and federal context the board and administration will monitor during the 2025 legislative session, as several bills mentioned earlier in the meeting (House Bill 1136, House Bill 1230 and Senate Bill 287) could affect district governance and funding rules if enacted. The treasurer encouraged periodic demographic study and cautioned the board about managing fund balances as one-time federal relief funds are spent down.