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Board faces FY27 deficit as finance committee outlines options, career‑ladder cuts draw pushback
Summary
Finance committee reported a projected FY27 deficit driven by state underfunding of the foundation formula; trustees debated proposed changes to the Career Ladder program that would reduce some educator payments while protecting tutoring hours, with concerns raised about retention of tenured teachers.
The St. Joseph School Board heard a finance committee briefing that laid out a tightening five‑year forecast, driven largely by the state's decision not to fully fund the foundation formula. Finance staff said the district faces a projected $3.7 million deficit for FY27 under current assumptions and noted a multi‑year drop in reserves that requires difficult tradeoffs.
"We are about $3.7 million deficit" the committee reported while explaining that reductions in state revenues (including capital gains impacts) left the state education funding short of the adequacy target, reducing aid to districts statewide. The board's citizens guide summary showed St. Joseph on the low side of assessed valuation compared with peer districts, increasing the local burden for revenue generation.
To reduce exposure, the district proposed adjustments to its Career Ladder program, which is funded roughly 60% by the state and 40% locally. Administration proposed preserving direct student‑contact elements (notably tutoring) while modifying stipend stages: Stage 1 would remain a $1,500 stipend for 50 documented hours; Stage 2 would be $3,000 for 75 hours. The proposed changes are contingent on final state budget action in June.
Trustees pushed back that the changes could disproportionately affect tenured teachers and harm retention. "This is going to affect our most tenured teachers the most," one trustee said, citing ripple effects on staffing and after‑school activities. Others said the board had to find compromises to avoid depleting reserves and potentially jeopardizing the district's fiscal health.
Board members asked staff for clearer lists of non‑classroom line items that could be reduced before cutting teacher compensation, and requested visuals showing options for levy transfers, outsourcing, and other revenue maneuvers. Staff committed to providing more detailed scenarios and to bringing a final recommendation after the state budget is signed.
No final policy vote was taken; trustees said they expect to revisit career‑ladder adoption in June once the state budget is finalized.
