District outlines $13 million program-based budget cut targets; staff survey to inform November package

Chris Blackburn, the district’s director of business services, told the South Washington County Schools board the district is pursuing a program-based budget-adjustment process to address projected revenue shortfalls driven by enrollment declines and rising costs. He said executive cabinet and program steering committees will lead work this summer and fall, with a full adjustment package brought to the board for approval in November and implementation next fall.

The presentation explained why the change: the district’s fund-balance policy target is 16.6% (about two months of expenditures), but current spending combined with enrollment declines and rising costs could leave the district below policy by fiscal 2027 and in statutory operating debt by fiscal 2029 unless action is taken. "At the current rate of spending, the district will be below fund balance policy by FY '27," Blackburn said. He also presented a modeled revenue-decline scenario and noted the district previously approved an $8,000,000 deficit for the coming year.

Blackburn framed the $13,000,000 general fund target (about a 3.5% adjustment) as being allocated across programs rather than applied as a flat cut. "Rather than do a 3 and a half across the board, we chose instead to do a program based budget model this year," he said. He listed program buckets and targets: school-specific adjustments (elementary $4,200,000; middle/high $4,500,000), student support services net target $700,000, district departments and services $1,000,000, facility usage and maintenance $1,200,000, and transportation (including special-education routes) $1,400,000. Blackburn noted nutrition services and community education have separate funds with targets ($200,000 and $400,000 respectively) that do not count toward the $13 million general fund target because statute requires those funds to remain separate.

To gather ideas and vet feasibility, the district has created steering committees for each program area (example counts given: district departments/services 18 members; elementary adjustments 22; middle/high 15; transportation 9; student support 14) and opened a staff survey in May that will remain open until Sept. 11. The survey asks five targeted questions about essential positions/resources, building-level efficiency opportunities, districtwide streamlining, revenue ideas, and other considerations. Blackburn said the survey had 438 unique responses through July 8 and urged broader participation from the district’s roughly 3,000 employees.

Board members asked clarifying questions during the Q&A. One asked whether special-education transportation was included under transportation or student support; Blackburn confirmed it is included with transportation. Members also pressed for clarity about who makes final decisions; Superintendent Julie Nielsen said the executive cabinet will make final decisions informed by steering committees and staff input. Blackburn said some items that cannot be implemented quickly will be deferred to the district’s five-year planning and levy discussions rather than to the immediate adjustment list.

The district will present a preliminary package in the fall for board discussion, seek approval at the November business meeting, and finalize and notify communities in December. Blackburn also said the district will monitor results post-approval to compare targets with achieved adjustments.

Votes at a glance: the board approved the meeting agenda and the consent agenda by voice vote earlier in the meeting (motions moved and seconded; chair called for "Aye," with no opposed recorded).