Superintendent tells board Edinburgh schools ran a $377,000 shortfall in 2025, cites enrollment decline
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Summary
Superintendent presented a detailed 2025 financial review showing a $377,084 operating deficit driven mainly by a drop in enrollment and reduced property‑tax revenue; he outlined fund transfers, referendum reliance and steps taken to cut costs.
The superintendent presented the district's 2025 financial results, saying the district earned $7,120,874.64 in revenue but finished the year with a $377,084.34 deficit. He attributed the gap chiefly to a long‑term decline in student enrollment and reduced property‑tax revenue tied to recent tax relief legislation the presentation referenced as "Senate Bill 1." The superintendent told the board the district must manage spending now to avoid larger cuts later.
The presentation divided the budget into four "buckets": education, operations, debt service and the referendum fund. The superintendent said roughly 80% of the education fund pays salaries and benefits and noted state law permits a transfer of up to 15% from education to operations; the district transferred about 14.7% this year to cover noninstructional expenses such as transportation, utilities and administration.
The superintendent showed a decade‑long enrollment decline, from about 918 students to roughly 720 on the most recent count, and explained that lower per‑pupil state support directly reduces district revenue. He also presented education‑fund cash balances: $2,577,024 in 2024, $2,200,000 at year close, and a projected $1,878,000, and said those reserves provide short‑term stability but cannot substitute for recurring revenues.
As cost‑management steps, the superintendent described using attrition and classroom consolidations to reduce staffing from 19 to 16 teachers during the year, saving an estimated $178,000 toward the shortfall. He said the district has also used referendum dollars for staff recruitment, transportation and safety, but warned pay increases funded from referendum money become part of ongoing salary schedules and would be difficult to sustain without continued voter approval.
Board members acknowledged the need to act on enrollment and praised the district's proactive approach. The superintendent emphasized legal limits on using cash balances for raises and the district's dependence on referendum revenue to negotiate new salary dollars. He said the district plans further adjustments to return to a positive balance by the end of 2026.
Next steps noted in the presentation included ongoing efforts to recruit and retain students, continued scrutiny of noninstructional costs (notably utilities), and public communication about district strengths to bolster community support ahead of future referendum windows.
