Dexter Consolidated Schools faces funding squeeze as enrollment falls and state formula changes

The presenter for Dexter Consolidated Schools told the finance board the district’s budget is due a week from today and that key state numbers needed to finalize the plan are not yet available. She said the district’s membership averages are down and that ‘‘we use our funding formula, that’s almost a $300,000 hit to us,’’ a shortfall driven by a drop of roughly 42–44 students in membership.

The district’s revenue picture remains dominated by the State Equalization Guarantee (SCG), which the presenter said accounts for most operating revenue. She noted the state-provided unit value recently increased ‘‘almost $250, $247,’’ which raises per-unit revenue but will not fully offset funding lost from lower membership and changes to the at‑risk index.

Why it matters: the state’s HB 63 funding changes include an English‑learner multiplier and a revised at‑risk calculation that shifts from Title I/EL/mobility measures to average income. The presenter said the district’s at‑risk index would move from about 0.205 to roughly 0.148 under the new method, reducing related funding. She also said the bill contains a ‘‘hold harmless’’ provision but that district staff are unclear about how much protection will be funded, noting apparent legislative limits that create confusion about whether full hold‑harmless coverage will apply.

Board members and the presenter discussed potential offsets: the revised cost differential will raise unit weights (for example, converting 744 membership into about 934 units under new weights), providing additional revenue under the new formula. The presenter also reviewed internal levers — reserves, staffing vacancies and restructuring of positions such as IT and related services — that could mitigate budget stress. She warned the district has to balance a 0‑based budget (expenditures must match projected revenues) while keeping a reserve to handle delayed reimbursements.

Staffing and raises: the presenter said the district lost four Level‑3 teachers this year (three retired, one resigned), which will lower the teacher cost index funding because replacements will likely be hired at lower certification levels. She also explained that the legislature authorized a 4% raise; because the governor removed the word ‘‘average’’ by line‑item veto, the raise will be ‘‘4% across the board’’ rather than an averaged allocation.

Next steps: the presenter said she will upload the available figures into the OBMS budget system and return the finalized budget for board signature once remaining numbers and the school calendar are finalized. No formal vote occurred during this session.