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District warns of multi-million-dollar deficits, seeks $3.6 million more in cuts to balance FY27
Summary
Dr. McGinnis told a town-hall audience the district ran deficits exceeding $10 million per year in recent years, currently has roughly a 10% operating reserve (policy target 20%), and must find about $3.6 million more in cuts to balance the coming year; administration emphasized balancing cuts with classroom protections and community-engaged planning.
Dr. McGinnis laid out the St. Joseph School District's financial outlook at a town-hall meeting, saying the district operated with budget deficits exceeding $10,000,000 in each of the 2023'24 and 2024'25 school years and finished fiscal year 2025 with an operating reserve of just over 10 percent. He said the board policy target is a 20 percent reserve and that the district must identify an additional $3,600,000 in reductions to balance fiscal year 2027.
"We did not know yet the serious financial challenges facing our district," Dr. McGinnis said, describing past and projected deficits. He said prior actions reduced spending by more than $6,000,000 over the past school year and that an earlier set of reductions identified nearly $3,800,000 in cuts that produced roughly $2,750,000 in savings after addressing existing overages.
The presentation highlighted that staffing accounts for about 75 percent of the district's budget and that the largest percentage decreases so far have come from central office administration, which saw a 13.64 percent reduction in positions. Dr. McGinnis said the district will likely again use a tax anticipation note to address intra-year cash-flow needs unless reserves rise to about 14 percent.
Administration emphasized that cuts should preserve classroom teaching and learning. "How do we preserve the classroom experience while becoming more financially responsible?" Dr. McGinnis said, noting recommendations from a finance committee and an independent review by the Missouri School Boards Association (MSBA) that guided early decisions.
He described a two-pronged recovery approach: reduce expenses through operational efficiencies (transportation, vendor contracts, deferred maintenance and software) and increase revenues through enrollment and grants, partnerships and reimbursements. The district also plans to work with DLR on a long-range facilities plan informed by community input.
Board members present did not take a formal vote on new cuts at the meeting. The administration said they will provide updated enrollment and class-size projections after the start of the school year and that community engagement on facilities and budget priorities will continue.
