Franklin school division asks council to accept $619,000 revenue reduction after enrollment drop

At the May 26 work session, Miss Morrison, finance director for Franklin City Public Schools, told the council the division must reduce budgeted revenue by $619,000 because average daily membership (ADM) fell between last year and the current count.

"Our average daily membership or our enrollment has declined and, therefore, our state revenues have declined," Miss Morrison said, explaining the amendment would reduce the appropriation rather than require additional city funding.

Council members asked whether the shortfall could be covered from the school division's accumulated fund balance; Miss Morrison said the division began the year with an accumulated fund balance but the exact amount usable for FY25 will depend on the pending fiscal-year audit. "We had over $2,000,000 in our fund balance that had accumulated over time," she said, adding that final audit figures will determine how much is available.

After questions about causes for the enrollment drop (Miss Morrison cited homeschooling and transfers to private schools, and offered to provide more specific data), the council voted to approve the amendment to reflect the reduced revenue. The action reduces the school division's budgeted revenue and therefore the appropriation in the division's FY27 budget; no supplemental city appropriation was requested at the meeting.

Next steps: the school division will finalize audit figures and return with any additional requests if needed.