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Board warned of $200,000 budget gap as enrollment dips; fund-balance concerns raised
Summary
Finance committee reported falling enrollment, a projected loss of students and the need to find about $200,000 in reductions next year. Staff warned the district's unassigned fund balance could fall toward 5% in two years unless mitigations are found, and noted long-term facilities-maintenance (LTFM) funding will resume next year.
District administrators told the West Central Area School Board that declining enrollment and revenue pressures will require program and staffing reductions unless other revenue or transfers are identified.
Tanya (staff member) said the district is projecting a net decline in students and is planning for approximately $200,000 in reductions to balance the preliminary fiscal-year budget. “We are projecting that we're going to have to make $200,000 in reductions,” she said, noting the district already uses conservative student-count assumptions and has limited options in supply and equipment budgets.
Administrators reported projected student counts (131 at South elementary prek–4, 190 at North elementary prek–4, and 452 at the secondary school, grades 5–12) and described structural pressures: a statewide pattern of lower birth rates, competition from neighboring programs and the mechanics of state aid formulas that do not fully offset operating-levy declines tied to enrollment.
Staff said the unassigned fund balance currently sits near 11% of expenditures but could decline toward roughly 5% after two years without corrective action, which could affect bond ratings. The board discussed potential approaches including staggered staffing reductions, targeted transfers from restricted funds where allowable, fee adjustments in community-education programs and re-evaluating nonrequired programming.
Administrators also noted that LTFM (long-term facilities maintenance) funding will return next school year, which could be used for some capital maintenance projects, and that a prioritized spreadsheet from buildings-and-grounds will help identify near-term safety and maintenance items.
The board asked staff to return to the March 18 meeting with specific program and position recommendations (where reduction would be considered) and to present a refined budget and options for keeping fund balance within board policy.
