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Pike County School Corp faces enrollment-driven education fund shortfalls and must decide on an operating referendum by June
Summary
Board presenters told trustees declining enrollment has led to more than $2.9 million in uncaptured state funding and projected monthly education fund payments near $1,000,000 for 2026; the board voted to pursue auditor certification and launch a community survey as it considers an operating referendum.
A staff member presenting the district's financial outlook told the Pike County School Corporation board that declining enrollment has left the district with "uncaptured funding of over 2,900,000," citing students who live in the county but attend schools elsewhere.
The presenter said the education fund is heavily dependent on average daily membership (ADM) and state grant formulas: "The basic grant accounts for 86% of the education money," with special education roughly 10% and CTE about 4%. The presenter said the district is projecting roughly $1,000,000 per month in state tuition support for 2026 but warned that monthly payments vary with state counts and midyear reconciliations.
Why it matters: state tuition support tied to student counts is the core revenue for the education fund, and sustained ADM declines reduce the district's recurring revenue. The presenter told the board the district had lost just over $400,000 in revenue tied to enrollment shifts and flagged changes to curricular material funding and CTE payments as additional pressures.
Board deliberations focused on options to stabilize finances. The board moved and approved a resolution authorizing administration to obtain county auditor certification necessary to prepare a potential operating referendum; the resolution will allow the district to determine levy calculations required for ballot language. The presenter said the board would have to decide by its June meeting whether to place a referendum on the ballot and that the administration will launch a short community survey to inform that decision.
On tradeoffs and constraints, the presenter said the district can transfer from operations to education when needed but noted property tax timing differences and state reporting schedules make education fund cash flow more volatile than operations. The presentation also included bank and bond balances, and an extended cash-flow projection required by the state monitor.
Board members asked about alternatives and outreach. The presenter said the district has started a marketing campaign — including a billboard on I‑69 and social media work — to highlight school achievements and counter negative online perception, and invited the board to consider whether a referendum question would be viable in the next general election cycle.
Next steps: the board approved the auditor-certification resolution and will post a community survey; if trustees choose to pursue a referendum they must decide at the June meeting and follow statutory notice and election timing rules.
