District says May forecast narrows multi‑year shortfall; board weighs levy timing and staffing cuts

A finance staff member told the Board of Education that a May update to the districtfive‑year forecast reduces the near‑term deficit and restores a positive cash balance in later years, but officials still face choices over staffing reductions and the timing and size of a possible levy.

"So, now, we're looking at a deficit spend of about $1,200,000," the finance staff member said, describing the May forecast. The staff member said the change from the November forecast is largely a timing issue tied to a career‑technical grant: the district advanced about $1.9 million of a roughly $2 million grant and expects state reimbursement after the fiscal year ends.

The forecast narrows a previous shortfall that the presenter said had been about $2.9 million and projects a positive cash balance of about $9.7 million in 2029 under the current assumptions. Revenue assumptions in the presentation include 68% from local taxes, 22% from state funding (including the fair school funding plan and homestead rollback reimbursements), and roughly $11 million from other sources. Projected interest income was listed as $2.0 million in 2026, $1.6 million in 2027 and 2028, and $1.5 million in 2029.

Why it matters: the forecast underpins the districtdiscussion over whether to place a replacement/additional levy on the ballot in 2025 or 2026 and how much to ask for. The finance staff member presented two timing options that both used a 5.9‑mill assumption, and said the board could either seek approval in 2025 (with earlier collections beginning in 2026) or wait until 2026; the presenter said either approach would produce positive results in the near term if the modeled reductions and assumptions hold.

Details from the forecast and assumptions

- Grant advance: The presenter said the district advanced about $1.9 million of a career‑tech grant the district expects to be reimbursed for by the state after the fiscal year ends. When a board member asked, "What's the amount of that grant?" the presenter replied, "The total amount? Just over $2,000,000."

- Staffing and personnel modeling: The May forecast includes modeled reductions in certified staff (12 positions in 2026, eight in 2027, three in 2028 and two in 2029) and reductions in classified staff (including an account clerk and a library assistant in 2026). It also includes the addition of a preschool classroom assistant, a reclassification of a transportation position (secretary 3 to dispatcher), a reduction of two administrative positions in 2026 and the modeled inclusion of safety officers discussed for upcoming school years. The presenter said assumptions included a 3% increase for collective bargaining units in the next three years and reduced the projected insurance increase from 7% to 6.5%.

- Reserves and cash position: The districtpresenter cited a district minimum general fund balance policy of 15%, which the presentation equated to about 55 days cash on hand. The presenter also noted a 5% budget reserve (set aside from prior year revenue) of roughly $5.7 million.

- Historical and one‑time items: The presenter pointed to a 2023 transfer of $14.1 million from the general fund to the capital fund as an unusual, one‑time large transfer that has since been stretched to meet capital needs. The November forecast had projected a roughly $60 million deficit by 2031; the May forecast reduced that long‑term deficit to about $34.6 million under current assumptions.

- Enrollment and revenue drivers: The staff member said enrollment has been declining for years but is showing signs of leveling. The presenter said roughly 83% of the budget goes to salaries and benefits, about 10% to purchased services and the remainder to supplies and operating costs. The forecast assumes continued normalization of property valuations in the 2027 triennial update and $8.5 million a year in new construction valuation.

Levy timing and scenarios

The presenter reiterated two previously discussed options: placing a levy on the ballot in 2025 or waiting until 2026, using a 5.9‑mill ask in both cases in the modeling. The presenter said a levy approved in 2025 would begin partial collections in 2027 and full collections in 2028, with an estimated first‑year collection of about $16 million under the model. The presenter cautioned that the timing of collection and legislative changes (including reference to House Bill 96 and proposed changes to state guarantees) could change projected outcomes and that continued expense reductions remain necessary.

Board action and next steps

There were questions from board members about kindergarten registration timing, how personnel costs could be broken down by category, and the assumptions behind health‑care and severance modeling. The presenter said the Citizens Financial Advisory Committee had reviewed the assumptions and that the MCE and MTA tentative agreements were included in the forecast assumptions; the presenter also noted the MCE tentative agreement had not yet been approved by the board.

No formal motions or votes on the forecast, staffing changes or a levy were recorded during the discussion. The presenter said the board and administration will reconvene for another update in late June (the presenter referenced a June 27 meeting) and that, if the board wished to place an item on a 2025 ballot, internal deadlines would require action in July and possibly a special meeting earlier in the summer.

The finance staff member concluded by summarizing that the district had met some short‑term reduction goals through 2027 but still needs additional actions to hold the outer years of the forecast steady, and said the administration would continue to present updated forecasts and explanations to the board and community.