Longview School Board hears year-end financial report as enrollment and new tax measures alter outlook

Executive director of business services Patty Bowen presented the Longview School District’s 2024–25 year-end financial report on Nov. 24, reporting an ending general fund balance just under $8.9 million and outlining revenue shifts, cost pressures and an updated four-year forecast.

Bowen told the board that the fiscal year closed with a fund balance equal to about 7.54% of total budgeted expenditures, within the district’s stated board budget parameter range of 7%–9%. She said the district experienced a roughly $3.3 million reduction in federal revenue tied to the sunset of ESSER relief funds, while state special purpose and categorical funding increased by nearly $4.6 million, driven in part by an increase in the special education funding cap from 15% to 16%.

Why it matters: state apportionment and categorical dollars made up the majority of the district’s revenue mix in 2024–25, Bowen said, and personnel costs account for the largest share of expenditures. "We continue to experience inflationary cost pressures," Bowen told the board, citing higher costs for goods, utilities, fuel and insurance. Personnel-related costs — salaries and benefits — represent roughly 83% of district operating costs, she said.

Bowen highlighted several specific budget impacts: increased state funding tied to the prototypical model and categorical increases; a notable increase in SEBB (employee) benefit costs (about $950 per benefits-eligible employee in the year cited); and higher contracted services driven by special-education needs and placements outside district schools.

The board discussed cashflow timing and the district’s practice of reviewing prior-year assessment data to inform school improvement plans. Bowen said that, after adjusting the beginning fund balance to reflect 2024–25 actuals, the four-year forecast as presented would keep the district at or above its 7% minimum in 2025–26 if revenues and expenditures follow current assumptions.

Board members asked about a newly expanded state sales/excise tax that Bowen estimated would cost the district about $315,000; Bowen said the new taxable categories (including some temporary employees and professional development contracts) offset some of the modest MSOC increases provided by the state. The district has raised the issue with regional associations and intends to monitor legislative activity.

Bowen also flagged audit timing: the state auditor’s financial and single (federal) audits are expected to be scheduled between January and March, after which the district will finalize the 2024–25 audit record.

The presentation closed with a reminder that enrollment remains the largest driver of district revenue; Bowen said the district would continue to monitor enrollment trends and adjust expenditures if a sustained decline becomes evident.