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East Grand Forks school board warns of roughly $1 million shortfall after SPED formula change and enrollment decline
Summary
Administrators told the board the district faces about a $1 million revenue gap driven by a new state special-education funding calculation and lower student enrollment; staff will bring corrective options to the board before the next meeting.
East Grand Forks Public School District administrators told the school board on March 2 that a change in the state’s funding calculation for special education, combined with declining enrollment, produced an estimated $1,000,000 shortfall in district revenue for the current fiscal year.
“...we're eating into our reserves and we just can't go on and, it's gonna need some correction,” Speaker 4, a board member, said after presenting revised levy and budget worksheets showing lower revenue and rising costs. The presentation showed enrollment down by roughly 50 students (31 of them in online programs) and a reduction in aid tied to special-education calculations that Speaker 1 described as a $521,000 reduction in aid caused in part by a roughly $450,000 lower base number from a new formula.
Administrators walked through several levy-calculation options and described how the district’s fiscal-year figures moved from previously estimated columns to a lower set of values in the updated state run. Speaker 4 said some of the discrepancy results from a combination of a new state formula and changes in prior-year expense reporting that affect the state computation used for aid. The district’s unreserved fund balance was shown falling in the materials, prompting staff to plan administrative meetings with finance personnel (Amanda and Lynn were named by Speaker 4) and bring corrective recommendations back to the full board.
Board members asked timing and remediation questions: how quickly the district must act; how projected FY2027 numbers might change; and whether cost controls or an operating levy would be required. Speaker 2 pressed for an understanding of deadlines and whether changes could be made within months, and Speaker 4 said administration will return with ideas but cautioned any major cost changes would likely take effect the next school year.
The board did not take formal budget action at the meeting. Speaker 4 said administration will meet to develop options and return to the board for direction at an upcoming meeting.
