The Muhlenberg County Schools Board meeting on May 16, 2025, focused on the district's financial status and budget considerations for the upcoming fiscal year. Key discussions revolved around the impact of fluctuating revenues and the allocation of funds, particularly concerning salaries and operational costs.

During the meeting, the district's financial officer presented a detailed overview of the revenue trends over the past few years. In fiscal year 2022, the district reported revenues of approximately $63 million, bolstered by COVID-related funding. However, revenues decreased to about $56 million in fiscal year 2023 and further to $55 million in the last fiscal year. Currently, the district anticipates revenues of around $49 million for the current year, with projections suggesting a potential increase to $54 million.

A significant concern raised was the high percentage of the budget allocated to salaries, which accounted for 70% of total revenues and 85% of the general fund. The financial officer highlighted that if state funding were to decrease by $3 million, the district's annual revenue could drop to approximately $51 million, severely impacting operational budgets.

The discussion also touched on essential expenses such as transportation, utilities, and insurance, which are necessary to maintain school operations. After accounting for these costs and restricted funds, the district would be left with about $7 million for operating expenses.

The financial officer expressed caution regarding salary increases, noting that while a 5% raise was granted the previous year, he could not recommend a similar increase this year. He emphasized the importance of financial stability and the need for careful budgeting, stating that a mere 1% raise for teachers would be inadequate and disrespectful.

The board's deliberations underscored the challenges facing the district as it navigates funding uncertainties while striving to support its educators and maintain quality education for students. The meeting concluded with a commitment to further evaluate the budget and consider the implications of the financial landscape on future salary recommendations.