The Saint Joseph School district is going through unexpected budget – tightening measures after administrators identified funding gaps earlier this summer.
The district is now making a plan to move forward. For KXCV, Gavin McGough spoke with a Vice Superintendent in the district, and has this report:
News of a budget gap in the St Joe Schools came earlier this summer related to a delay in the delivery of federal funds and incorrect enrollment estimates. Despite thinking in June it was in good financial shape, last minute adjustments sent the schools Capital Reserve Ratio plummeting to around 10 percent.
According to district policy, the reserve ratio must be at least 20 percent says Robert Hedgecorth.
A reserve ratio is an indicator of district savings. Keeping a 20 percent reserve means if the district received absolutely funding, it would enough in the bank to get through 20% of the fiscal year, or just over 2 months.
The district is now considering multiple pathways back to financial health. But it must cut around 8 million dollars in the coming years. The district is already making efforts to cut expenses on supplies and third party contracts.
But around 75 percent of district expenses are from staffing, so it will seek reductions in that area.
Ideally, those efficiencies can be achieved through retirement and teachers voluntarily leaving the district. Hedgecorth says in a best scenario he hopes:
Part of the issue relates back to pandemic era federal funding bumps, which caused the roll out new programs.
Longer term the district is also looking to close one of its three high schools in the city and move to two high school model. Hedgecorth says he could not provide detailed budget numbers, but a consolidation would help with district expenses.
The School Board will consider, and potentially adopt, a revised budget at its October meeting.
