Finance officer reports falling enrollment and projects continued revenue pressure

During the meeting, district finance staff presented the district’s investment and fiscal indicators and warned that declining student counts are reducing education fund revenue.

Michelle, who presented the investment report, said interest income was "really close to $300,000" last year and that current bank interest rates on district deposits are about 3.34%. She said First Bank Richmond has tied the district’s rate to about 30 basis points below the Federal Reserve and that the district compares those yields to alternatives such as Trust Indiana, which offers slightly higher returns but is not federally insured. Michelle noted a maturing certificate for the high school will be rolled into a money market when it matures in March.

On enrollment, staff reported a drop that was summarized as "we're losing 120 students," with the education fund percentage falling from 14.02% last year to 11.91% this year. Michelle said the district used conservative assumptions in its 2026 projection and that revenue percentages are likely to continue to decline unless the district caps losses or attracts more students. She said some of the shortfall will be addressed through transfers and by adjusting staffing when necessary; the meeting record notes the district transferred the full 15% from operations to education (just over $2 million).

Why it matters: Enrollment levels drive state funding formulas and the education fund share. A sustained decline could require budget adjustments, staffing changes or program prioritization.

What’s next: Staff said they will continue to update the board on enrollment trends and projections ahead of upcoming budget negotiations and that rolling investments and transfer decisions will be part of that discussion.