Understanding Our District’s Financial Challenges
Our school district is facing several ongoing financial challenges that are affecting the district’s ability to maintain current staffing, programs, and services.
Declining enrollment:
The district is projected to have approximately 100 fewer students over the next five years. With approximately $7,000 in funding associated with each student, this enrollment decline represents roughly $700,000 less in annual revenue when fully realized.
State and federal funding:
In addition to enrollment changes, the district is experiencing reductions or changes in funding from state and federal sources. These changes further contribute to the district’s financial challenges.
Increasing costs:
The cost of providing education continues to increase, including expenses related to staffing, technology, transportation, utilities, insurance, and other district operations. As costs increase while revenue decreases or remains limited, the district has fewer resources available to maintain current services.
Fund balance:
The district also has a relatively low fund balance, limiting its ability to use reserves to offset ongoing budget challenges. The district has used available resources and made reductions where possible to avoid more significant cuts.
Potential Impact Without Additional Revenue:
If the proposed operating referendum does not pass, the district will need to make substantial additional reductions to its budget. Potential impacts may include salary freezes, reductions in staffing, changes to extracurricular and elective programming, and fewer resources for classroom technology and other student needs.
Potential Impact WITH Additional Revenue:
The district anticipates that the proposed operating referendum ($254,000) plus the Permanent School Fund Amendment ($20,000-$25,000) would provide approximately $275,000 in additional annual revenue. This additional revenue would be used as part of the district's overall operating budget to help address the gap between available revenue and ongoing expenses.
The district will continue to evaluate its budget, enrollment, funding levels, and expenses each year as it works to balance financial responsibility with the educational needs of students.