ISD 191 board directs staff to model roughly $4 million in reductions as enrollment dips

The ISD 191 Board of Education on Feb. 12 directed district staff to model roughly $4 million in spending reductions for the FY 2026–27 budget after adopting a set of scenarios that balance cuts and fund‑balance drawdown.

Stacy Sovine, executive director of administrative services, told trustees the district had lowered its enrollment projection for next year to 6,890 students and is already seeing revenue impacts tied to that decline. "We adjusted our projected enrollment down to 6,890 students for next year," Sovine said during the presentation of initial budget assumptions and scenarios.

Sovine outlined revenue and cost pressures: a state general aid increase of about 2.69 percent, an anticipated increase in English‑learner funding, but a projected reduction in compensatory funding of just under $1.9 million. She also highlighted that personnel costs represent the district’s largest expense and itemized other pressures including health insurance, transportation and utilities.

To show choices available to trustees, staff presented four illustrative scenarios. The most conservative option would preserve a fund balance near current levels and require roughly $13.6 million in budget reductions; a middle option would spread reductions and use fund balance more modestly; an option favoring minimal cuts would spend down reserves toward roughly 12.5 percent of ending fund balance. Sovine stressed the scenarios were high‑level benchmarks rather than final proposals.

Trustees debated timing and risk. Several members said they wanted to give new Superintendent Dr. Latanya Daniels flexibility to execute her early priorities while also avoiding a precipitous erosion of reserves. One board member warned against relying heavily on one‑time fund‑balance spending given uncertainty in state funding and enrollment trends.

After discussion the board coalesced around a middle path and asked staff to re‑run the scenarios modeling about $4 million in reductions (a midpoint between the staff scenarios discussed) and to return exact percentage effects on the fund balance. Chair and other trustees emphasized the need to avoid falling below the board policy minimum fund balance and to plan for multi‑year effects given enrollment and compensatory funding uncertainty.

Next steps: staff will return to the board at the March meeting with proposed budget recommendations, open an online survey and hold community engagement sessions in March and April before bringing a proposed budget for formal action in June.