District cost-management workshop outlines staffing reductions, revenue assumptions and $2.8M projected adjustment

At a May 18 special meeting, district administrators presented a cost-management workshop laying out enrollment trends, staffing changes and revenue assumptions ahead of the June 22 budget hearing.

Presenter Howell told the board the workshop was “intended to walk you through, the board through the cost management process, the assumptions we are currently using, and the steps that administration has taken to reduce structural budget pressures.” He emphasized the presentation was informational and not a formal budget hearing.

Howell reviewed recent budget history and fund balances, saying the district’s 2024–25 audit shows roughly $131,000,000 in wages and salaries that account for about 89% of the budget. He said the general-fund balance rose after COVID-relief dollars and has since declined; he cited a fund-balance figure shown in slides as “8.34%.”

On enrollment, Howell noted the district had a little over 10,000 students in 2019–20 and 8,953 in 2025–26, a decline he described as roughly 1,192 students since 2019. He attributed the decline to lower birth rates and broader regional trends and said grant-funded positions and expanded student-support services partly explain why some staffing categories rose even as enrollment fell.

Howell outlined planning numbers for FY27: about 6.7 FTE reductions in the LCEA group (approximately $871,000) and additional central-office and program adjustments that together were described as approximately $1.8 million in staff-reduction savings and roughly $770,000 from other efficiency moves. He stressed these are budgeted estimates, not final figures, and said final amendments would come in June.

On revenues, the presentation used an assumption of $250 per pupil (about $2.2 million) in additional state aid under current state projections and described how an operating millage, if pursued and approved, would reclaim roughly $700,000 lost to rollback. Howell said adjustments and negotiated compensation increases were being included in planning numbers; the presentation showed anticipated revenues of about $6.7 million against projected expenses of about $5.7 million, producing an estimated favorable adjustment of roughly $2.8 million compared with last year’s $3.9 million deficit spend.

Board members asked about moving positions from the general fund to grant funding. Howell said the duration depends on the grant: some at‑risk grants have been stable for many years, while newer sources such as "31AA" were described as one-time money and should be treated cautiously. He said the district had placed $1.8 million of additional state-aid funds into deferred revenue to guard against potential legislative changes or clawbacks, and noted the board had previously discussed legal conditions tied to some funds when deciding to accept them.

Howell summarized the district’s goals: align staffing with enrollment, protect classroom instruction where possible, maintain fiscal stability and bring the district closer to a balanced budget. He said more detailed figures and the final amendment would be presented at the June 22 budget hearing.

Votes at a glance - Agenda approval (May 18 special meeting): motion made and approved by roll call; result recorded as "All 4." - Student travel request: motion made, seconded and approved on voice vote (Aye; no opposition recorded). - Tentative agreement with Teamsters: motion made and approved by roll call; result recorded as "All 4."

The meeting closed after a motion to adjourn and Howell thanked staff for their work. A full budget hearing with more detailed numbers is scheduled for June 22.