Board Brief - 9/25/2024

Presented by:

• Ms. Diana McCluskey, Chief School Business Officer

• Mr. Anthony Fashoda, Director of Fiscal Services

At the Committee of the Whole meeting on September 25, 2024, Chief School Business Official Diana McCluskey and Director of Fiscal Services Anthony Fashoda presented the FY25 final budget. Building on a successful FY24, which concluded with a $3M surplus and the completion of the Moving 15 Forward construction projects, which came in on time and on budget, the District is working towards taking on another transformative year.

The FY25 budget reflects the District’s commitment to advancing key initiatives: middle school model, full-day kindergarten, staffing to meet these needs, and continued improvements in the 5-Year Facility Plan. These enhancements come with a financial cost. A conservative approach is used in budget planning and is an estimate of FY25 activity. The final FY25 operating funds revenue budget is $208M and the expenditure budget is $221M. The District expects to use $6.4M in reserves with a final projected deficit of $6.9M for FY25. We will continue to make critical investments in our students’ futures, including the addition of new staff, facility upgrades, and transportation improvements, but will also look for ways to trim expenditures to bring them in line with revenue streams. The District will continue to monitor its financial health closely while maintaining its commitment to both fiscal responsibility and educational excellence.

The Board of Education was supportive during the discussions, fully understanding that some fund balance was expected to be used when the M15F initiatives are in place. Board members expressed their commitment to these investments and acknowledged that these financial moves are necessary to create the world-class learning environments we envision for our students.

Board President Lisa Beth Szczupaj emphasized that when we engaged with the community, we were clear that it would take a year or two to stabilize financially after undertaking such significant projects. Now, the challenge is to assess whether we can continue at this pace or if we will need to slow, halt, or push certain projects out farther. We've accomplished an extraordinary amount of work, and now it's time to perform a balancing act—ensuring we maintain our momentum without compromising our financial health.

Next Steps
The District’s Cabinet team will continue to meet regularly to explore ways to reduce the projected deficit, not only for this year but for future years. Over the next few months, some difficult, but necessary conversations will take place about where these reductions can occur.

Superintendent Heinz, along with the leaders of the business department, will work closely with the Cabinet to brainstorm and evaluate ideas for potential cost-saving measures. By the end of the calendar year or at the start of 2025, we hope to present viable options for the Board to consider, keeping the best interests of our students and continued fiscal stewardship at the forefront of all decisions.