Elkhart schools project more than $12 million deficit without cuts; trustees briefed on bond plans
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Summary
Finance director Miss Ross told the board that education and operations funds show pressures tied to wages and benefits; projections indicate more than $12 million in deficit spending for 2026 without $6 million in additional savings, and administrators said they are pursuing consolidation savings and potential bond issues with Standard & Poor's review.
Miss Ross presented the districtmonthly financial update on March 24, telling the board that a three-pay month contributed to a negative starting cash balance for February and that wages and benefits are driving a structural shortfall.
"We are expecting about an inflow across the education and operations of about $120,000,000. We expect an outflow of more than that, over $130,000,000," Ross said, summarizing 2026 cash-flow projections that show a potential deficit exceeding $12,000,000 by year-end if consolidation and other savings are not achieved.
Ross detailed cost-saving initiatives already in progress (payroll reductions, time-clock software, a food-services management contract with Chartwells, and consolidation savings) and said those actions have produced about $5.3 million of savings so far. She and board members discussed the district's upcoming Standard & Poor's call about bond issues to fund facility improvements; Ross said bond proceeds are being considered for elementary and secondary mechanical and infrastructure projects and that the credit rating affects borrowing costs.
Board members asked for and received a brief explanation of the S&P process and the importance of presenting enrollment, fund health and audit results. Trustees and administrators emphasized transparency and continued monitoring of cash balances, and Ross said results of the rating call were expected the week following the meeting.
