School City of Hammond adopts 2025 budget; trustees warned of $15 million referendum loss and steep enrollment decline

School City of Hammond trustees voted to adopt the district's 2025 budget and supporting resolutions after a months‑long financial briefing that warned of shrinking state support and local referendum revenue.

Mr Eric CTS and presentation staff told the board the district’s consolidated balances — shown net of short‑term borrowing — leave the district roughly $13 million below board‑established reserve targets. The presentation listed key fund balances as of Sept. 30: the education fund at $4.7 million, the operating referendum fund at $1.8 million, a negative balance in the debt service fund of $3.8 million, an operations fund around $11.5 million and a rainy‑day fund at about $3.4 million. The administration recommended short‑term borrowing (tuition‑anticipation and tax‑anticipation warrants) in 2025 to manage cash flow and meet debt obligations.

The presentation highlighted two revenue drivers that will materially affect 2025: the scheduled expiration of the operating referendum, which staff said will remove roughly $15 million from next year’s budget, and continued enrollment losses. Administration reported an October certified average daily membership (ADM) count of 9,979 students (not including approximately 580 pre‑K students), representing a decline that will trigger a November–December true‑up and an estimated shortfall of just over $3 million in the immediate term and an estimated $6–6.5 million loss across the full school year if trends persist.

The board voted to adopt four resolutions that together set the 2025 budgets, levies and tax rates, authorize recommended fund transfers, and approve the district’s bus‑replacement and capital projects plans. Trustee Blake King moved approval of resolutions A–D; the motion was seconded and passed by voice vote.

Administrators emphasized the need to preserve cash reserves and the role of short‑term borrowing options such as the Indiana Bond Bank’s tuition‑support loan to smooth cash flow. The presenter explained that missed debt payments can trigger a state intercept of tuition support that would be redirected to bondholders, and said the recommended borrowing for 2025 would be smaller than last year’s.

Board members asked for more detailed documentation during discussion, including line‑item reporting of ESSER/CARES allocations and a list of unencumbered funds. Trustees also sought invoices and punch‑list confirmations for capital projects that had experienced delays, such as work at Scott Middle School.

The adoption secures the district’s legal authorization to set levies and proceed with planned transfers and capital planning; administrators said they will return with requested supporting documentation and with updates as enrollment and state funding numbers change.