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Caledonia projects shortfall; administration targets $2.7 million in cuts to meet fund-balance policy
Summary
District finance staff told the board the state revenue forecast has been revised downward and ESSER funds are ending, putting the 2024–25 budget at risk; administration proposed identifying $2.7 million in reductions to meet the board's 13% fund-balance target.
Caledonia Community Schools staff told the board on May 20 they anticipate tighter state funding and the expiration of federal pandemic-era (ESSER) dollars, leaving the district facing a potential deficit for 2024–25 and a need to find about $2.7 million in cuts to preserve board policy minimum reserves.
Mister Breese, speaking for the administration, said a state revenue conference revised collections downward by about $160 million statewide, and the district now expects revenue growth of roughly 2% for 2024–25. With projected expenditures around $74.6 million and revenues estimated under $70 million under current assumptions, the district presented a scenario in which doing nothing would drop the fund balance well below the board's 13% minimum.
"We are targeting $2.7 million" in reductions as the working goal to keep the district above the 13% fund-balance policy, Breese said. Administration identified roughly $1.7 million in potential savings so far — including savings from retirements/resignations and reductions to an underutilized Pine Rest support program — and is continuing to search for the remaining reductions.
The board directed administration to return to a June 4 workshop with more detailed options so members can weigh staffing, programmatic and operational choices. The district noted two major unknowns remain: per-pupil state funding for the coming year and next year's student enrollment, both of which materially affect the budget outlook.
