Board hears projections of rising utility and personnel costs as state budget shortfall looms

Chief Financial Officer Hines briefed the board on revenues and expenditures and highlighted utility cost pressure that could affect the district budget. Hines said electricity costs are up in recent months, reporting a year-over-year electricity increase averaging about 12.19% and projecting roughly $56,000 in additional electricity costs if current trends continue. He estimated natural-gas increases could add almost $20,000 and solid-waste/recycling increases about $4,000 — totaling an approximate $80,000 additional utility expense for the year.

Hines also explained timing differences in tax and state-aid receipts (which can create monthly revenue spikes) and noted that grant-funded salaries are often reimbursed months later, which places cash-flow demands on the general fund. "We have to have the cash on hand today to pay the salaries and benefits, even though we might get that money in the future," he said.

In the superintendent’s report, district leadership described engagement with legislators and statewide education groups as the unicameral considers a projected budget shortfall. The superintendent referenced a widely reported estimate of a $471,000,000 state budget shortfall and encouraged the board to consider how fixed costs beyond local control — utilities, food, cleaning supplies and salary/benefit increases — could affect local budgets.

The superintendent also updated the board on Project RISE fundraising: through private gifts and foundation activity, the campaign has raised about $480,000 to date; leadership plans further discussions before any public campaign launch.

No new budget action was taken at the meeting; staff will return with additional financial detail during the January agenda items (including the annual audit presentation and certified state-aid numbers).