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District outlines $1.3M allocation and facility questions for proposed 2 Rivers charter
Summary
District finance staff told the school board a 100-student 2 Rivers charter would draw roughly $1.3 million through the state formula; after estimated teacher adjustments the initial net district cost could exceed $1 million, with ongoing questions about a proposed $100,000 lease, building capacity, and maintenance liabilities.
District Chief Financial Officer Andy DeGraw presented the board with a fiscal model showing the likely budgetary impact if the 2 Rivers Homestead Charter opens with roughly 100 students.
Using the state funding multipliers and a base student allocation of 6,660, DeGraw said the charter’s adjusted average daily membership would translate to an allocation "pretty close to $1,300,000." The model then subtracts two estimated classroom-teacher savings (rounded to whole FTEs), producing an initial FY27 net cost to the district of about $1,044,000. DeGraw warned the district would not see revenue benefits immediately due to a hold-harmless provision tied to the prior 2 Rivers Elementary closure: "So right now, there would be no revenue benefit because we're already benefiting from the hold harmless," he said.
Facility arrangements and lease assumptions further complicate the district’s position. DeGraw said the applicant proposes a shared-space lease at roughly $100,000 per year while retaining the BEST program in the building; administration noted the building’s official deed capacity is 98, but historic enrollments have exceeded that figure. Administration also provided context on average maintenance (~$26,000 per year), utilities (~$50,000 average three-year), and a six-year capital-improvement backlog the district estimates at roughly $15.2 million.
Board members questioned whether teacher 'savings' in the model represent real net reductions or simply a transfer of positions to the new school. Several trustees argued that, practically, staff costs follow students and positions may move rather than be eliminated; administration said its PTR-based tools show scenarios where two FTEs could be reduced if sufficient students leave a single attendance-area school.
Transportation and Title I impacts were also discussed. District policy allows charters to be included in transportation on a space-available basis; any service would depend on route capacity and student locations. On Title I, administration said charter status does not automatically guarantee Title I allocations and that district procedures would determine whether and how supplemental Title I services could be applied to a charter school in future years.
The administration emphasized enrollment is the major driver: DeGraw told trustees that moving from 100 to 125 students materially improves the school’s financial picture (roughly $300,000 per additional 25 students in the model). The board requested more ZIP-code–level enrollment data from the state and asked administration to return with additional analysis as the application process moves forward.
