District projects tighter revenues; board discusses staff reductions, reserves and consolidation savings

District finance leaders told the Blaine County School District board on Dec. 9 that midterm state support‑unit calculations and rising insurance costs have worsened next year's budget outlook, prompting a proposal of staff and non‑staff reductions.

Finance staff said the district budget estimate used about 146.25 protected support units; the state's midterm calculation reported 141.77 support units, meaning the district must rely on protection pullbacks that will leave a budgetary gap. Staff estimated the revenue impact at a level the district could absorb with modest offsets but noted an interest earnings uptick partially offsets lost revenue. The meeting included detailed discussion of how attendance counts (particularly secondary athletics and the timing of away events) affected midterm calculations.

On benefits, staff reported higher health‑plan utilization that prompted a model increase to insurance expenses; actuaries/brokers recommended a 12–17% increase in premiums and the district has used a 17% modeling assumption for planning. The rental assistance program was reported at about $388,000 remaining, with roughly 31 stipend recipients covering the next two years.

To meet board guidance for near‑term reductions, district leaders presented a set of proposed staffing reductions (a mix of certified and classified positions, small fractional custodial and nursing adjustments, and reallocation of some services) estimated to meet an initial target of about $1.2 million; leadership said they could return in January with an additional $300,000–$1.5 million in possible reductions if revenues do not improve. They also noted potential one‑time offsets including proceeds from property sales and savings from consolidating the district office and IT functions into an alternate campus. Trustees discussed reserve balances and whether to use one‑time reserves to cover shortfalls, and staff emphasized the need to avoid structural deficits long term.

After executive session, trustees ratified administration's decision to place one employee on paid administrative leave pending an investigation; that personnel action was separate from the budget conversation but was recorded in the meeting minutes.