Creighton projects tight FY25–26 budget, recommends 15% reserve and $750,000 for staffing talks

Creighton Elementary District finance staff on March 11 presented a mid-cycle projection for fiscal year 2025–26 that anticipates enrollment decline, potential reductions in federal and state grant revenues and recommends maintaining a 15 percent fund-balance reserve.

Finance staff described several risk factors that shaped the projection: ongoing enrollment declines that include immigration-related impacts, possible reductions in federal grant funding (projected in the staff presentation at 25–30 percent), and an anticipated 8–20 percent drop in some state grant funds tied to changing poverty metrics. The district’s finance presentation also told the board it expects to finalize the budget after the state’s January enrollment adjustments and that the May revision will capture additional allocated dollars.

The board heard staff recommendations and tentative allocations The finance presentation, delivered by district finance staff Shapiro, recommended keeping a 15 percent reserve in the Maintenance & Operations fund and proposed $750,000 be returned to the meet-and-confer process for bargaining and compensation decisions. Shapiro described the $750,000 as an amount the district could maintain ongoing and said meet-and-confer could use the funds for increases to longevity stipends, salary adjustments, or reductions in student-teacher ratio. Shapiro noted that the district previously used one-time funds to change ratios and that the recommended amount could fund ongoing changes, including a potential 26:1 class ratio or approximately a 2.21 percent across‑the‑board salary increase depending on final allocation.

Staff emphasized conservatism given federal and state uncertainty Board members asked detailed questions about assumptions in the projection. Shapiro said the projection uses a conservative approach and that the analysis incorporated historical precedents, including enrollment shocks such as the SB 1070-era declines. She told the board that carry-forward estimates and reimbursement-based grant timing affect available dollars and that the budget will be revised as more definitive numbers become available.

Board reaction Board members stressed prudence in managing the carry-forward balance amid federal rhetoric and possible cuts. One board member noted House committee discussions to identify large federal cuts and raised concern that programs such as school meals, SNAP, or Medicaid policy changes could indirectly affect district finances or services. Another member said the SOFG alignment between budget and student outcomes is a positive development and thanked staff for coordinating curricular and budgetary planning.

Action recorded in the meeting - Motion: Approve consent agenda items a through f and h (consent agenda motion). Mover: President Prio. Second: (recorded). Vote: Aye; Katie Gibson McLean clarified her vote as “aye” though she participated online. Outcome: approved. (The board later pulled one procurement item for future discussion.)

Next steps Shapiro said the administration will continue to monitor federal and state funding developments, finalize inflation and medical-cost assumptions, and present refined budget figures at future board meetings. The administration will bring a revised budget to the board by the statutorily required May revision and continue coordination with curriculum staff to ensure budget decisions align with SOFG goals.