Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Finance topic
No spam. Unsubscribe anytime.
Stifel warns North Harrison board that enrollment declines and state tax changes will squeeze revenues
Summary
At a May 14 presentation, a Stifel school-finance representative told the North Harrison Community School Corporation board that rising costs, falling enrollment and recent state legislation will reduce local revenue and require long-term budget planning.
A Stifel school-finance specialist told the North Harrison Community School Corporation board on May 14 that the district faces a multi-year fiscal squeeze as enrollment falls and state tax changes reduce revenue.
"We're wanting to make sure that the financial decisions that our school district makes today keeps us in a good financial position 3 to 5 years down the road," the presenter, Chad Blackpott, said during a 30-minute briefing on school funds, revenue sources and budget projections. Blackpott was introduced to the board as a Stifel representative the board had contracted to help with long-range financial planning.
Blackpott said inflationary pressure on staffing, transportation and insurance has driven up operational costs while revenue growth tied to student counts has not kept pace. He warned the board that state legislation described in the presentation as "Senate Bill 1" will lower taxable values and change how some county income-tax (LIT) revenue is shared, and he gave district-level estimates used in the presentation: a projected operations-fund loss of about $313,000 annually beginning in 2029 from LIT changes and an estimated $390,000 revenue reduction starting in 2026 tied to a new homestead credit line shown on property-tax bills.
Blackpott also reviewed enrollment trends. He said the district's February 2026 count was 1,989 students, a drop of 146 students (about 7%) since 2019, and that per-student operational levy revenue for North Harrison is below many peer districts. He urged the board and administration to use the next 12 months to create a long-range plan that accounts for statutory limits on fund transfers and the district's projected cash balances.
Board members thanked Blackpott and the administration for pursuing an independent financial review; the district's board president and superintendent signaled they will use the analysis to guide future budgeting discussions. Blackpott closed by offering to answer follow-up questions by email or phone and by noting Stifel will continue to work with the district over the coming year.
The presentation included detailed charts on the education (instructional), operations and debt-service funds and showed historical cash balances, a $500,000 investment placed in 2023, and projections through 2030. The presenter emphasized the constraint that some funds can only be used for specific categories of expense and that debt-service balances are legally restricted. He recommended planning to avoid reactionary decisions and to consider potential referendum and levy options as part of scenario planning.
Next steps: the board and administration said they will review the Stifel analysis and incorporate it into upcoming budget work sessions and long-range planning.
