St. Joseph School District projects $3.7 million shortfall after state underfunds foundation formula

Staff member presented a preliminary budget forecast saying the St. Joseph School District expects to close the current year with a modest operating surplus but faces an estimated $3.7 million deficit next year after the state underfunded the foundation formula and reduced several state grants.

The presenter said the legislature met its constitutional deadline to pass a budget but “did not fund the foundation formula, either for this year or next year,” and cited an aggregate underfunding figure the district is tracking. For planning, staff said they used an SAT per‑pupil assumption of 6,800; the presenter added that the budget currently funds roughly $69.50 per SAT while Senate Bill 727 had set $71.45 in statute.

That shortfall, combined with the loss of one‑time federal reimbursements the district received this year and declining enrollment, drives the projected drop in total revenues from about $174 million this year to roughly $158 million next year, staff said. “We’re still looking at…