Finance committee hears $3.5 million projected shortfall; staff to seek further cuts and options including tax increase and land appraisal
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Summary
Committee reviewed a preliminary general-fund budget showing a roughly $3.5 million deficit after health insurance increases; staff reported $3.9 million in prior reductions and will reassess building and department budgets for additional savings while the board considers revenue options including a maximum tax increase and a possible appraisal of district land.
Joni presented the finance committee with an updated preliminary general-fund budget that, after recent adjustments, shows a projected shortfall of about $3.5 million for the coming budget cycle.
The update removed previously proposed staffing-study savings that the board did not approve and included an additional 10% health-insurance increase, leaving an estimated deficit committee members said must be addressed before budget adoption. "So now your, anticipated shortfall is 3.5 for this year," Joni told the committee.
Staff noted prior expense reductions totaling roughly $3.9 million but cautioned costs continue rising. The committee discussed both expenditure cuts and revenue options. A slide staff presented indicated raising taxes to the maximum legally allowed would reduce the shortfall by about $1.1 million, shrinking the gap to roughly $2.5 million; board members emphasized solving the gap will require cuts and likely additional revenue.
Board members asked Dr. Redmond and administration to identify specific reductions the committee could recommend to the full board. Chris said the committee will recommend the administration return with options for additional savings (Joni and Dr. Redmond were asked to review whether a 5% savings target could be reasonable in certain line items). Bill and others urged focus on priorities and avoidance of damaging classroom services, while some members proposed targeting nonessential spending.
Committee members also raised potential one-time revenue options: one member suggested commissioning a professional appraisal of a roughly 40-acre district parcel adjacent to the high school to determine whether a sale or other use could be a viable revenue source. Members asked for a rough ballpark estimate before committing to a paid appraisal.
Next steps: Administration will rework building and department budgets for further reductions and return with firm recommendations to the board in the upcoming budget-review cycle (April presentation, May proposed budget, June adoption window). No formal vote was taken at the committee meeting.
