Board says no financial emergency yet; legal counsel outlines steps for May supplemental levy

At its annual reorganization meeting, the Lakeland School District Board of Trustees heard advice from outside counsel on the legal process for declaring a financial emergency and agreed not to declare one at this time, while asking staff to prepare levy options and budget figures for an anticipated May supplemental levy.

Megan O'Dowd, outside counsel, told trustees the financial-emergency process arises under Idaho Code 33-522 and “is a formal recognition of a state of financial duress” that can trigger special steps such as reopening salary-and-benefits negotiations and, in some cases, imposing last-best offers or pursuing reductions in certificated positions through a modified due process. She said the declaration requires the district to meet statutory thresholds and that the state also must certify one of the tests.

O'Dowd described two primary statutory thresholds the district must meet: a reduction in tax revenues that had been expected (subsection d) and a general-fund balance below a statutory percentage (the state certification test). She cautioned trustees that timing and additional information from the state and the district’s budget office would be needed before a declaration could be certified, and that many of the steps are time-sensitive.

Board chair Thompson summarized the board’s position after the briefing: “Based on the information that we received this evening, it does not appear that we should be declaring a financial emergency at this point in time.” Trustees directed administration and the finance office to prepare a district budget scenario and dollar amounts for a possible supplemental maintenance-and-operations (M&O) levy so the board can consider ballot language and amounts before the county clerk’s March 31 deadline.

O'Dowd said the March–May calendar is crucial: if the board wants a May ballot, it must adopt ballot language by March 31 and expect state budget and levy impacts to be clearer in April–May. She advised trustees that negotiations with unions can begin earlier but that reopening salary-and-benefit terms and imposing last-best offers are statutory powers that become available after a declaration is made and state-certified.

The board took no formal action to declare a financial emergency; trustees instead agreed to reconvene with updated financial figures and levy options at a special meeting. The board also directed staff to circulate a corrected timeline document and to provide the CFO’s budget estimates in advance of the next meeting.