Board approves October budget amendment after debate over $9 million salary shortfall
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Summary
The board approved an October budget amendment that included roughly $3.3 million of central‑office cuts and corrections to salary/benefit projections after administration disclosed an FY26 underestimation of about $9 million; vote 5–2.
The St. Joseph School District board approved an October budget amendment to reduce FY26 expenditures and correct salary and benefit projections after administration disclosed the district had underestimated salary and benefit costs by about $9,000,000.
Dr. Hedgekorth (district finance lead) presented the amendment, saying the district started FY26 with a 10.02% operating fund balance and worked with directors and principals to identify reductions that are "furthest from the classroom." The amendment proposes approximately $3.3 million in reductions from central office (technology, board office, human resources, special programs, communications, business office, nutrition and others) and additional reductions at the school level.
During questions board members focused on a $1,184,610 curriculum/benchmark purchase approved earlier in the year. Administration said the business office had assumed that vendor Benchmark’s cost could be spread over six years, but the vendor’s quote required a large upfront payment to preserve a discount; that incorrect assumption left an overage in the FY26 budget. "It was over $9,000,000 So your FY26 budget underestimated salaries and benefits by over $9,000,000," the finance lead said.
Board members pressed whether the budgeting error was a business‑office assumption or an academics budgeting issue; the administration characterized it as an incorrect assumption by the business office during budgeting cycles and said staff negotiated with Benchmark but could not both keep the upfront discount and stretch payments over six years.
Board members asked for outside review. Administration has engaged external reviewer Linda Quinley, who has pulled five years of ASBR data and is scheduled to present findings at a November 10 workshop; the district’s official audit by KPM is on schedule for December. Administration said approving the amendment now would ensure eFinance Plus budgets reflect the cuts so departments know what they may spend.
After extended discussion the board approved the October budget amendment 5–2. Two board members said they were uneasy about approving reductions before the external review was complete.
The board also voted separately to approve bills, the September financials and personnel reports during the same meeting; most of those routine items passed unanimously.