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District finance director warns of roughly $2 million shortfall for 2025–26 budget
Summary
Ms. Holberchock told the McGuffey board that, with current assumptions, the district faces an estimated $2 million deficit next year driven by rising salary and benefit costs, cyber charter tuition and reduced federal ESSER funding.
The McGuffey School District's finance presenter told the board March 20 the district faces a projected shortfall of roughly $2 million for the 2025–26 fiscal year unless changes are made to revenue assumptions or spending.
In a presentation to the board, Ms. Holberchock said the district had collected about $28.25 million in revenue as of Feb. 28 (about 81% of the budgeted amount). She summarized major cost drivers: salaries and benefits (around 65% of the budget), health insurance increases (noted as a reduction in previously anticipated growth but still up about 5.7%), increased contracted services, and substantial per‑student costs for cyber charter enrollments (about $14,600 per regular education cyber student and over $30,000 per special‑education cyber student in the year cited).
Holberchock said projected total revenue looked like roughly $35 million with a $2 million deficit under current indexing assumptions, and highlighted that federal ESSER one‑time funds are exhausted. She said the district is examining staffing, retirements and contracted services for potential savings and would work on multi‑year financial strategies rather than year‑to‑year fixes.
Board members asked for greater clarity on one‑time funds and the district's reliance on Medicaid access funds; Holberchock said roughly $100,000 from an accumulated access‑fund balance had been used this year to hire a special‑education teacher and that about $500,000 remained in that account but that future federal policy changes could affect continued receipts.
Holberchock told the board auditors were finalizing fiscal 2023–24 figures and that any positive audit results would restore fund balance but that the district could not tap certain reserved funds to cover operating costs. The board did not take immediate policy action but directed continued analysis of staffing and contract alternatives.
