Baird forecast shows operational loan, planned staffing cuts put Amery School District on path to higher reserves

At the May 26 board meeting, Baird consultant Debbie Brunette presented a multi-year forecast showing that an operational loan recorded in the 2025–26 budget and proposed spending reductions would move the Amery School District from structural deficits toward a projected surplus.

Brunette said the model includes audited historical figures, the 2025–26 budget and projected years, and that key variables remain uncertain until state data and September FTE are final. "The ultimate goal is to get to a preliminary budget by July 1 so that as soon as the fiscal year starts, the board can start seeing those budget to actual reports in in real time," Brunette said.

District staff (Sean) described the planned reductions underpinning the forecast: elimination or reduction of 9 support staff positions and 16.5 certified positions, with a reported $1.259 million in projected savings after an assumed $500,000 salary increase. Sean said the total package of staffing and non-staff cuts—van-route reductions, elimination of summer and extra custodial positions, removal of SLO coaching, delaying a new bus purchase and cuts to purchased services and supplies—amounts to about $2.5 million in reductions depending on final salary decisions.

Brunette and staff also described the role of one-time borrowing: the forecast as presented includes a $3.5 million operational loan recognized in 2025–26 and $1.5 million in 2026–27. With that loan included, Brunette said, the district's budget for 2025–26 shows a surplus and the district fund balance rises to about 15.3%; under current assumptions the model projects the fund balance could reach roughly 30% the following year.

The presentation quantified recent district results: audited 2024–25 actuals showed expenditures about $2,160,000 higher than revenues, a structural deficit the board and consultants said the cuts and loan are intended to address. Brunette cautioned the board not to focus on one revenue line: "Please don't get stuck on $20,773,236 in revenue for next year because that number will change," she said, noting the September FTE count and open enrollment are the largest variables.

Staff described how proposed cuts would be implemented and monitored: energy-use changes already produced about $25,500 in documented savings over four months; the district will track contract and purchase reductions and said building principals will be cut off from discretionary spending on statutory timelines. Sean said certified nonrenewals followed required statutory notice processes and that many staff chose to resign during the statutory 15-day period, reducing the number of forced nonrenewals.

Board members asked how savings would protect instructional quality. Sean said department and building budgets would be reduced by about 25% in many categories and that the district would reallocate within budgets if one area proved unsustainable. Brunette and staff recommended a cadence for updating the forecast and suggested quarterly reviews for the board as a reasonable starting point.

The presentation reiterated the limits of the district's authority over state-controlled revenue formulas and the continued risk from declining enrollment and per-pupil aid that has lagged CPI. Brunette said many districts nationwide face similar pressure and that those who rightsized earlier or requested additional operational referenda have fared more favorably.

Next steps: staff said they will continue to refine the model, layer in June 30 actuals and September FTE when available, and bring a preliminary budget in July followed by a final budget for board adoption in October.