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Smith Valley board warned of revenue shortfall; budget committee to meet in April
Summary
The Smith Valley School Board was told its three‑year average enrollment calculations will produce a drop in general‑fund revenue next fiscal year, prompting plans for cuts and a budget & finance meeting on April 14 to shape expenditure options.
Lacy, a board official responsible for district finance, told the Smith Valley School Board that the district faces a decrease in its general‑fund revenue for the coming fiscal year because the three‑year average of A&B counts no longer includes a recent high enrollment year.
"For the first time since I've been here, we're looking at a decrease in our general fund revenue budget," Lacy said, urging the board to begin immediate planning. She said preliminary work on the expenditure side will follow within a week so the budget and finance committee can identify where cuts may be needed to cover salary and other cost increases.
Why it matters: the district has relied on a three‑year average of enrollment to calculate state aid; recent lower counts mean less revenue even as salary and cost pressures continue. Lacy warned a modest increase in next year’s enrollment would not be enough to offset the shortfall under the current averaging method.
Board members discussed options for addressing the gap. Lacy said some certified staff may still shift positions before the April certification deadline, which could change final salary projections. She also raised a compliance issue under the STARs act that affects eligibility for double QEC payments: the district’s base salary step is no longer compliant and the board must choose whether to raise the base or adopt MOA language guaranteeing new hires start at a higher step.
"We will have to make some changes and language," Lacy said, recommending the board consult MTSBA or MASBO on specific required language to preserve state payments.
Next steps: the board agreed to convene a budget and finance committee meeting on April 14 at 5:30 p.m. to review expenditure scenarios and committee composition. Lacy asked the board to consider adding certified and classified staff and at least one community member to the committee so negotiators and stakeholders understand the district’s fiscal position.
The board did not take a final budget vote at the meeting; Lacy and administration will return with more detailed expenditure estimates and options.
