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Lebanon Community SD 9 budget committee warned enrollment declines could strain reserves
Summary
At a budget committee meeting, Director of Financial Services Steven Persosky said enrollment declines and projection timing create risks for the district's budget, while interest earnings and reserves currently provide a buffer; members asked for more detail ahead of the May 8 budget meeting.
Steven Persosky, the district's director of financial services, told the Lebanon Community SD 9 budget committee that recent enrollment declines and the timing of state funding projections create ongoing forecasting challenges for the district.
Persosky said Lebanon's general fund for the current year is about $60,000,000, with roughly $50,000,000 of that tied to the state school fund. "It means operating with honesty, transparency, and accountability, and maintaining a healthy financial system," he said, framing why an ending fund balance matters. He reported Lebanon finished with a "healthy ending fund balance in 23–24" and that the district projects to finish close to the same level this August.
The director emphasized that enrollment projections are a major uncertainty. He cited fall counts and ADM reporting: Lebanon's fall enrollment was about 4,057 in 2023–24 and 3,916 this year, and mid‑year recalculations from the state can change revenue. Persosky noted that the state pays districts based on the higher of two years' ADM and described the timing problem: projections are prepared in December and submitted in January, while updated counts can arrive in mid‑February.
Persosky highlighted interest earnings as a material revenue source: "We project to finish with just right around $1,000,000 of interest earned for this current year, which is equivalent to six FTE at 75%." He also noted that roughly 75% of the district's general fund is spent on salaries and benefits, and that current bargaining proposals (described in the discussion as "offering 5 and 3") would cost roughly $3,300,000 if fully staffed.
Committee members asked how possible federal cuts would affect the district; Persosky said the district had not yet received precise percentages and that some current-year resources included leftover ESSER funds. He told members the finance team monitors cash flow daily and uses a mix of the Local Government Investment Pool, a money-market account at a local bank, and laddered securities (via Piper Sandler) to manage liquidity and earnings. Persosky gave a recent example of a maturity returning about 5.18 percent.
The budget committee set a next step: members should email questions in advance of the district's first budget committee meeting on May 8, when staff will provide updated materials including the budget book and school-level participation data. Persosky said staff will return with more detailed projections and answers to members' questions.
