During a meeting of the Lafayette Parish School Board, finance staff reviewed the district’s fiscal outlook and warned that charter-school growth, self-funded insurance losses and an expiring property tax could combine to create multi‑million-dollar shortfalls.

The presentation, led on the record by finance staff member Anthony Woods, focused on the district’s revenue mix and specific budget pressures. "Our net NFP allocation for the school district this year is $124,000,000," Woods said, and he added that the district currently expects to transfer about $52,900,000 to charter schools this year as part of state funding flows.

Those transfers come as enrollment has declined. The district reported total enrollment of 28,759 and said charter enrollments are rising in a way that, district staff estimate, may reduce local tax revenue by tens of millions of dollars over the next two years. Woods and staff projected a loss tied to charter growth of roughly $41,500,000 in a near term projection and cited a scenario that could push local-tax diversion to about $46,800,000 in a subsequent year. Board members and staff flagged an additional projected impact of roughly $9,000,000 tied to an 800‑student shift the district expects in a future year, with another similar-year impact possible after that.

The presentation also flagged debt and bond‑rating considerations. Woods noted the district has roughly $577,000,000 in outstanding debt and highlighted $442,000,000 in sales‑tax‑backed debt; he warned that drawing down reserves could put the district’s bond rating at risk, which would raise interest costs on future borrowing.

Self-funded employee health insurance was presented as another major near‑term pressure. Woods said the program posted an $8,600,000 operating loss last year, required a $6,600,000 general‑fund transfer and was projected to run another large deficit this fiscal year (Gallagher’s estimate cited in the presentation: about $7,600,000). He said the plan’s fund balance is projected to shrink to roughly $2,200,000 entering the next fiscal year and that two years of operating deficits total about $16,000,000.

To address the combined pressures, staff outlined several options already under consideration: reducing staffing through targeted ratios and program consolidation, using one‑time funds (including unspent ESSER dollars) to smooth near‑term gaps, and pursuing operational savings such as a dependent audit and an RFP for pharmacy benefits. Woods said the district intends a February workshop to brief board members on the health plan and possible changes.

A major revenue action discussed was renewal of a 7.79‑mill property tax that funds schools and will expire in assessment year 2026 (fiscal year 2027). Woods told the board that 7.79 mills represents about $22,200,000 annually and urged starting the renewal process early; staff recommended an October 11 election date to preserve multiple re‑run options if a renewal fails, with a formal board announcement slated for March.

Board members and staff also discussed a proposed constitutional amendment on inventory taxes on an upcoming statewide ballot. The amendment would allow parishes to exempt business inventory from local property tax and trigger a one‑time state payment to parishes if they choose exemption; staff said the district expects the school system’s portion of that one‑time payment to be about $5.4 million but also warned of an estimated ongoing annual local revenue loss of about $9.8 million under some scenarios.

Woods closed by urging continued outreach and education for legislators and voters, and by noting the district’s intent to use conservative sales‑tax projections and to sequence difficult budget decisions before final adoption. The board discussed communications support for a potential millage renewal campaign and emphasized getting employees and community partners engaged in upcoming elections.

The presentation included multiple follow‑up items for staff, including scheduling the February insurance workshop, developing a millage‑renewal timeline for a March board item, and continuing outreach with legislators about how state funding flows to charters and the district.