Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Education Finance topic
No spam. Unsubscribe anytime.
Finance director warns of $4–6 million potential shortfall in St. Joseph School District forecast
Summary
At a work session the district’s finance team presented a five‑year forecast showing a potential $4.2–6+ million shortfall next fiscal year under conservative state funding assumptions; administrators said staff reductions and reorganization are expected to reduce the gap but not erase it.
The St. Joseph School District’s finance team told the board during an April 13 work session that lower-than-expected state revenue and a drop in the state adequacy target could leave the district with a multi‑million‑dollar budget shortfall next year.
Dr. Hedgecorth and staff laid out two modeled scenarios. Using a conservative state adequacy target (SAT) assumption of 6,740 and a lower Prop C projection, the district’s worst-case forecast showed a projected budget deficit of just over $6 million for next year. A moderated scenario (SAT nearer 6,900 and a higher Prop C) reduced the deficit to about $4.2 million. In both scenarios administration said the primary driver is revenue shortfall at the state level, not a sudden rise in district spending.
Key figures presented: the district projects it will end the current fiscal year with roughly a 10% reserve ratio; FY25 per‑pupil cost was presented as about $13,000; a 4.2–4.7 million dollar revenue hit was attributed to changes in the SAT and Prop C assumptions. Administration estimated that planned reorganization and attrition-driven staffing reductions will save approximately $3.8 million for the coming year, narrowing but not eliminating the forecasted gap.
Board members pressed staff on areas for additional reductions, asking specifically about purchase services and transportation. The finance team said about $8 million in purchase services is driven largely by outsourced transportation, and transportation reimbursements from the state are likely to revert to FY25 levels — a modest reduction in offsetting revenue. The presenters recommended aligning cuts to the district’s strategic plan and prioritizing expenditures closest to classroom instruction.
Administration emphasized uncertainty in the final state numbers and said a proposed preliminary budget will not be presented until June to incorporate legislative outcomes. Next steps include continuing reassessment of expenses, pursuing the reorganization savings already in motion, and monitoring state legislative developments.
Quote from the presentation: "If you look at our fund one and two expenses... we have a $160 million budget, and 4 million is roughly 2.5% of that budget," the finance presenter said, framing the arithmetic of the adjustments the district must make.
The board will revisit budget projections at its next scheduled meeting and expects more clarity after the state legislature finalizes appropriations.
