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Finance director outlines $1.6M state funding shortfall and proposes supplemental budget reductions
Summary
Mr. Hogan told the board the district’s loss of about 170 students last year reduces state school fund revenue by roughly $1.6 million and lowers the special‑education weighting cap; he proposed a supplemental budget adjustment and plans to bring a resolution next month to reduce the salaries/benefits budget and adjust contingency.
Mr. Hogan delivered a detailed financial update at the Nov. 19 work session, saying the district lost roughly 170 students last year and that the resulting decline in average daily enrollment will reduce state school fund revenue by an estimated $1.6 million. He also said the drop affects the special‑education cap (the district’s SPED share falls under the 11% cap), which amplifies the revenue loss. "So we're gonna receive about 1,600,000 less of state school fund," Hogan said, and added that the combined effect of enrollment and weighting changes increases the fiscal impact beyond per‑pupil estimates.
Hogan reviewed prior budget reductions (about 40 general‑fund and roughly 10 additional non‑general‑fund positions reduced) and said he has been tracking payroll to confirm savings. Based on current projections, he recommended a supplemental budget adjustment: reduce the salaries and benefits budget (he proposed lowering the salary line from the adopted figure toward a more realistic projection), increase contingency and make a modest addition to liability insurance. He said the district will publish a supplemental budget resolution for the board to adopt at the next regular meeting; no formal vote occurred during the work session.
Trustees asked for details relating positions cut to projected savings; Hogan said he wanted to see actual payroll runs before finalizing adjustments because the savings depend on which positions were eliminated. The board also raised PERS concerns: Hogan estimated the district will face roughly $400,000 of additional PERS costs next year as employer rates rise and said state action could offset some but not all of the increase. Hogan projected an ending fund balance under his proposal of roughly 8.1% (below the 12% target but improved from earlier low projections).
The board heard Hogan’s plan to prepare a supplemental budget resolution and present it for adoption at the next regular board meeting. Trustees asked for follow‑up detail on the composition of savings and the consequences for instructional programs and staffing.
