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Ashland School Board authorizes loan resolution as district budget shows multi‑million shortfall
Summary
Board approved a resolution to permit short‑term and longer‑term borrowing after staff detailed an enrollment-driven revenue shortfall and accounting issues that left the general fund projecting a multimillion-dollar deficit.
The Ashland School District Board of Directors on March 13 approved a resolution authorizing the district to pursue short‑term or longer‑term borrowing to cover operating shortfalls after staff said the district faces a significant budget gap driven by enrollment declines and accounting adjustments.
District business director Sherry Eli told the board she had rebuilt recent financial records and found a cumulative drop of about 423 weighted students since 2018–19 and said that decline equated to roughly $4.4 million less State School Fund revenue. “When you're having decreasing enrollment like that and you don't make staffing adjustments, it has a big impact on your budget,” Eli said as she described revising prior years' books and reconciling audit entries.
Why it matters: the board approved a resolution (listed in the meeting as 2024–25 B1/2425B1) that does not itself borrow money but establishes the legal steps the district must take to pursue either a tax anticipation note (short term borrowing) or a full faith and credit loan if needed. The measure must be publicly posted and a 60‑day waiting period observed before the district may engage lenders.
Eli said the district’s ending fund balance for 2023–24 was worse than previously reported and that reclassifications and unposted entries in prior years had complicated projections. She identified over‑spending in other funds — ESSER, food services and transportation — that increased pressure on the general fund. “Preliminary estimates from ODE… look like the district's going to receive about an upper‑$800,000 increase in State School Fund” for 2025–26, Eli said, but that alone would not cover the shortfall without additional actions.
Superintendent Joseph Hatrick emphasized the board and staff were still in an information‑gathering phase and said no final decisions had been made about specific cuts or borrowing amounts: “Decisions haven't been made. I've received quite a few inquiries about where we're at in the process and I just want to make it clear that no decisions have been made about where we're headed.”
Board action and next steps: the board voted to approve the resolution to allow the district to pursue borrowing once the size of any gap is finalized. The vote was unanimous with five directors present. Board members and staff described two financing paths: a TAN (tax anticipation note) that must be repaid within about 13 months, and a longer amortized full faith and credit loan. Board members and staff said their preference would likely be a longer loan if the need is large enough, with the district using borrowed funds to restore balanced operations and then repay principal over multiple years.
The business office will continue refining projections, reconcile audit issues, and determine a recommended borrowing amount. The board and staff said they intend to present more detailed modeling and options at upcoming work sessions and at the April regular meeting.
Ending: Board members stressed the district must both restore fiscal stability and preserve instructional programs where possible; Eli said a detailed budget plan and clear account segregation will be brought back to the board as projections solidify.
