Cascade SD 5 officials warn state revenue drop could force district budget cuts

Superintendent Trudeau and Finance Director Wong told the Cascade School District 5 board on an evening meeting that the district is preparing for possible state revenue reductions tied to recent federal tax-law changes.

"We are still up about 55 to 60 students," Trudeau said while framing enrollment trends, then added that state agencies have asked districts to model cuts. Wong reported that PERS costs have risen and said, "Now within 2 month, has cost us more than $440,000, just compared to last year." The finance director said the district maintains a dedicated PERS reserve fund intended to smooth short-term impacts.

Wong and Trudeau detailed planning scenarios the district is modeling: a 1% cut, a 2.5% cut and a 5% cut. Wong said a 2.5% statewide reduction would translate to roughly $1.5 million for Cascade; administrators emphasized the exact impact depends on the final state revenue forecast expected with the next quarterly report. Trudeau said district leaders are meeting with building administrators and association representatives to identify options that prioritize classroom instruction while managing personnel and operations.

Board members asked how long the reserve would sustain costs under different scenarios; administrators cautioned longevity depends on enrollment and the size of any state reductions. No formal action was taken beyond direction to continue scenario planning and report back when state forecasts are updated.