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Troy City School District draft budget shows $4.1 million gap; board discusses using one-time capital aid and attrition
Summary
District staff presented Draft 1 of the budget showing a $4,100,000 deficit, outlined options including transferring $3.6 million in one-time small-city capital outlay aid to capital projects and relying on attrition rather than layoffs for 30 federally funded positions; the board scheduled further budget discussions before the May 20 vote.
District staff reviewed Draft 1 of the Troy City School District budget and told the board the district currently faces a $4,100,000 gap in the draft presentation.
The staff member presenting the financials said state aid in the slides was $90,500,000 and that the district’s foundation aid increase for the year was shown as $1,200,000. On the tax cap, the presenter explained that although the consumer price index is 2.95 percent this year, the tax cap calculation currently yields 2.57 percent and “2.57 generates about $974,000,” money that would reduce the gap if the board elects to use the full allowable levy. The presenter cautioned that the 2% tax-cap mechanics are complex and that exceeding the cap would require a supermajority vote from district voters.
On one-time revenue, the staff member recommended transferring $3.6 million in small-city capital outlay aid into capital projects, noting the district expects a high reimbursement rate and that treating the aid as a capital transfer is budget-neutral for the operating budget. The presenter said the district had spent roughly $4 million of an approved $5 million outlay and expects to receive roughly $3.6 million in reimbursement in the near term if deadlines are met.
The presenter also described 30 positions that were established with federal funds during pandemic recovery and said the district is keeping those positions in Draft 1 for now but will consider attrition rather than layoffs to reduce recurring costs. “We’re gonna try really, really, really hard not to be laying people off,” the presenter said, adding the district will review which federally funded positions to keep as staff naturally leave.
The board was told the district will continue to analyze the budget, review reserves, and consider a potential levy increase; the presenter said draft 2 will be discussed in a future meeting once state one-house budget numbers are clearer. The board approved several routine consent agenda items during the same meeting; vote tallies for the consent motions were recorded on the meeting record as unanimous 'Aye' votes for the listed items.
