Cedar Rapids superintendent and finance staff report FY25 $9.5M general-fund deficit, cite enrollment decline
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Summary
Superintendent Dr. Grover and finance presenter Carla Hogan told the board the district recorded a $9.5 million FY25 general fund deficit driven by enrollment declines and ESSER timing; Hogan reported total FY25 revenue of $328 million and said salaries and benefits account for 78% of general fund spending.
At the Nov. 17 meeting the Cedar Rapids Community School District presented FY25 financial highlights and a superintendent report that tied safety and program updates to budget pressures driven by enrollment declines.
Carla Hogan presented the financial overview, saying the district’s total revenue for FY25 was $328,000,000 compared with $339,000,000 in FY24 and that the general fund recorded a $9,500,000 deficit. Hogan said part of the deficit reflected ESSER funds used in prior years to cover allocated expenses and that a drop in enrollment contributed materially to the shortfall. Hogan noted the district’s fund balance remains near $36,000,000, which she characterized as a reserve to cover summer obligations.
Hogan broke down general fund expenditures, reporting salaries of approximately $146,000,000 (about 61%) and benefits of $42,000,000 (about 17%), which together make up roughly 78% of general fund spending. She cited categorical shifts — including a $259,000 decrease in teacher leadership funds, overspending in statewide voluntary preschool, and a roughly $10.9 million special education deficit line — and said updates from the Iowa Department of Education slightly changed unspent-balance estimates.
Superintendent Dr. Grover reported progress on district safety priorities and curricular pilots: major office referrals fell about 4%, incidents of physical aggression declined about 10%, and ‘‘the use of physical restraints has plummeted by a dramatic 58 percent,’’ which she attributed to trauma-informed practices, de-escalation training and stronger behavior supports.
Directors asked for more detailed enrollment movement data after Hogan said the district’s October count decline exceeded projections; several directors requested a breakdown showing where students went (by district and school) and scheduled an in-depth review at the Dec. 5 work session. Hogan confirmed the district can provide that report.
Board members also discussed insurance and other funds (student activities, management, SAVE and nutrition), noting a $6,000,000 nutrition fund deficit driven in part by pension liability adjustments and the district’s plan to participate in equipment-breakdown coverage for FY26.
The presentation left the board planning follow-up analyses on enrollment trends, categorical spending and options to limit future deficits.