Budget Reduction Plan 25-26

As we plan for the upcoming 2025-26 school year, it is important to keep our community informed about the significant financial challenges our district is currently facing.

Contact Us! We have created this email account to centralize all budget-related questions. If you have any questions, suggestions, or feedback, please email us at byronbudget@byron.k12.mn.us. This email account is maintained by the Superintendent and the Executive Finance Director of Byron Public Schools.

UPDATED DOCUMENTS

Enrollment Projections - June 2024
23-24 Audit Report and Presentation (Dec. 2024)
24-25 Revised Budget Information (Dec. 2024)
Finance and Facility Presentation (Dec. 2024)
Budget Adjustments for 2025-26 Action/Presentation (Dec. 2024)
Byron PreSale Report (Dec. 2024)

Budget Reduction Plan 25-26

Strategic Planning for Financial Stability

This summer and fall, our leadership team and school board will develop a strategic plan to address the district's financial challenges. Using data from the 2023-24 audit, we'll create a more detailed budget in the fall to understand the needed reductions. Focus groups of staff and community members will review the data and provide recommendations for achieving financial stability. These recommendations will guide the leadership team and school board in planning necessary reductions, allowing us to thoroughly research and anticipate the impact of each decision.

District Stability and Accountability Plan

Our focus is to get back to financial stability and do an overhaul of our management practices that will improve the checks and balances needed for this size of budget. These improvements will include, but not be limited to:

Develop financial reports, monthly forecasting, and strategy discussions with the school board and administrative team on a monthly basis
Strategic project planning and review of LTFM and capital projects
Implementation of purchasing guidelines and approval/oversight processes
Partner with administrative team to ensure adherence to new protocols and financial budgets
Utilizing an outside third party to reconcile monthly expenses for improved oversight
Complete a cash reserve analysis
Develop better communication processes with our financial institutions
Eliminate the LTFM deficit that started at $1.5M seven years ago

Budget Reduction TimELine

UPDATED December 23, 2024

June-July (2024)

New spending policies and procedures will be developed and implemented
June 17 - School Board meeting - Adopted Budget
July 8 - Work Session with Board to discuss operating referendum and lease levy,
July 15 - School Board meeting - action regarding possible operating referendum and lease levy

August (2024)

August 5 - School Board Work Session
August 7 - Leadership Team Meeting 8:30 - 3:00
August 14 - Staff Advisory Meeting 3:30 - 5:00
August 14 -Community Advisory Meeting 6:00 - 7:30

Will need 2 admin and 2 board members on these committees

August 19 - Teacher Workshop Week
August 19 - School Board Meeting at 6:00

September (2024)

September 9 - Meet with High School staff at 3:15
September 10 - Meet with Middle School staff at 3:15
September 11(18) - Meet with Primary School staff at 3:15
September 12 - Meet with CEC staff at 7:45
September 12 - Meet with Intermediate staff at 3:15
September 18 (11) - Staff Advisory Committee meeting at 3:30 - 5:00
September 18 - Community Committee meeting from 6:00 - 7:30

October 2024

October 1 - Enrollment numbers will be compared to budget enrollment numbers
October 7 - School Board Work Session
October 16 - Staff Advisory Meeting 3:30 - 5:00 (if needed)
October 24 - Community Advisory Meeting - 6:00 - 7:30 (in needed)
October 28-29 - Audit Begins

November (2024)

November 4 - School Board Work Session 5:30 - (Audit Report?)
November 5 - Election Day (Referendum/School Board Election)
November 13 - Staff Advisory Committee 3:30 - 5:00 (if needed)
November 13 - Community Advisory Committee 6:00 - 7:30 (if needed)
November 18 - Budget Committee Meeting 4:30
November 18 - School Board Meeting 6:00
November 21 - Finance and Facilities Committee Meeting 4:30 - 6:00

During September/October

Ongoing information sessions for operating referendum
School Board candidate meetings

November/December/January -

Leadership Team meetings regarding reduction plans

January - April

Begin implementation of reduction plan for 2025-26 school year

FAQ's

We have established a frequently asked questions and response document based on our survey and questions fielded by administration. We will update as questions continue to come in.

Updated June 20, 2024

Our Challenges

District Challenges

Health insurance went up 28%, amounting to approximately $600,000 increase in cost. This was in addition to the 29% increase from last year.
Salaries were under-budgeted by $1.5 million.
From 2020–2023 the District received an additional $414,616 to support educational efforts due to Covid-19. The money was used to hire mental health and intervention staff to help students succeed. These funds are no longer available.

state funding

The State recently approved new mandates, many that have additional costs for implementation. This includes additional course requirements, paid Family Medical Leave, unemployment, and mandated teacher training.
The state funding formula, which provides school districts the majority of their funding, has not kept pace with inflation for the past 20 years, challenging school districts to do more with less. School districts in Minnesota receive 18.6% less per student than they did in 2004. For Byron, this difference would have equaled approximately $3.4 million dollars for the 2023-24 school year.
Byron was the 3rd lowest funded district (per pupil) in the state of Minnesota in 2023-24. The District does not have an operating levy and does not receive various categorical aide that other districts receive due to the small number of students we serve in these categories(e.g., special education, English language learning, etc.).

ARCHIVE - Reduction Plan 24-25 Timeline

CALENDAR ARCHIVE

February -- Development of 2024 Budget with anticipated decrease of 20 students
April 9 - District is notified Insurance will increase 28%
April 10 - District Leadership informed of issue and need to reduce budget due to unenrollment, insurance increases and start working on a reduction plan
April 15 - School Board Financial Report
April 28 - Byron Buzz - "Updates from the School Board"
April 30 - Email to staff notifying the significance and includes Budget Reduction Survey
May 1 - 2024 Budget Forecast via Ehlers
May 1 (Insurance Committee) - confirmed 29% increase in 2024-25 with a projected 20% increase in fiscal year 2025-26.
May 2 - District Leadership informed of insurance information including projected increease for the 2024 school year. Also informed of projected shortfall for 23-24 school year.
May 3 - Notification to Staff
May 5 - Notification to Families
May 6 - School Board Work Session: Financial Update Presentation - Byron School Board was presented with an updated 5 year forecast which exhibited the budget shortfall of the current year, and gap to the unassigned fund balance target of 8%. Byron School Board gives permission to the leadership team to cut up to $2M for the 2024-25 school year.
May 7 - Staff Meeting and Community Meeting: Discuss these issues in detail, answer your questions, and gather your feedback. (presentation)
May 13 - School Board Special Session: A list of recommended reductions were made by the leadership team and later presented and approved by the Byron School Board. Due to a late start in May, the leadership team chose not to directly cut teaching staff besides positions due to attrition. Reductions of $1.2 million were approved by the board.
May 20 - School Board Meeting: Monday, May 20 at 6pm at the Byron High School MPR to take action on personnel reductions.

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