The Governing Board Work Session held on April 25, 2025, focused on addressing the district's growing budget deficit, which has escalated from $3.5 million to $4 million due to declining student enrollment. The meeting highlighted urgent strategies to balance the budget for the upcoming 2025-2026 school year while also considering long-term solutions.

The discussion began with an overview of the current financial situation, emphasizing the need to reduce the maintenance and operation (M&O) budget. The district plans to implement staffing adjustments, having already cut several positions, resulting in over $1 million in savings. The administration stressed that these decisions are made with careful consideration to avoid jeopardizing the quality of education.

Key budget adjustments were outlined, including transferring funding sources to alleviate the M&O budget. Positions related to third-grade testing requirements will be moved to the classroom site plan, while special education teachers' salaries will be shifted from M&O to IDEA and Medicaid funding. However, concerns were raised about the potential loss of Medicaid funding, which could significantly impact the district's financial stability.

The total projected savings amount to $4,151,872, which addresses the current deficit but raises concerns for the following school year. The administration warned that any further loss of Average Daily Membership (ADM) would necessitate additional budget cuts. The board is expected to vote on the budget in June, contingent on state funding approvals.

Looking ahead to the 2026-2027 budget, the administration highlighted structural deficits, including a $2 million shortfall from one-time funding sources. The need for potential restructuring and further staffing adjustments was emphasized as the district seeks to maintain its operations amid financial constraints.

The meeting concluded with a call for open-mindedness regarding future recommendations from the administration, as they aim to guide the board in navigating these challenging financial circumstances. The board's decisions in the coming months will be crucial in shaping the district's fiscal health and educational quality moving forward.