Petersburg schools project $278,000 pro forma deficit; district highlights $26M in facility needs

The Petersburg School District's finance director, Shannon Baird, told a joint work session that fiscal-year 25 closed with an approximately $500,000 budget-to-actual variance and that the district is intentionally spending down a large fund balance to reach a targeted 10% reserve by the end of the current fiscal year.

"Where we ended fiscal year 25, we had another large budget to actual variance of about a half million dollars," Baird said, and she said the board has adjusted FY26 budgeting practices to account for staff attrition and vacancies. Baird said a first-draft pro forma budget for FY27, entered into a public simulation tool, shows a roughly $278,000 deficit under a status-quo staffing and programming scenario.

On capital projects, Baird said two recent projects (including a high-school office entry remodel and a roof) came in higher than budgeted but were stretched by a 65% state major-maintenance reimbursement. She said upcoming campus security and access upgrades planned for summer 2026 will be paid largely with bond dollars and the reimbursement, but will still require roughly $350,000'$400,000 from the district's capital fund.

Superintendent Robin and district staff summarized the district's code-and-condition survey, a 400-plus-page document that cataloged facilities work. "We actually met and we identified the 3 major areas that we'll be focusing on for future CIP submittals: exterior substructure, centralized HVAC replacement for the middle and high school, and electrical upgrades," Robin said. Staff estimated the identified items at about $26 million (2027 dollars) and warned that some HVAC parts are obsolete and could become unrepairable.

Officials discussed reapplying for state major-maintenance funding once a project is bid or underway to improve ranking; the group noted the state tends to fund only the top-ranked projects in any year. Staff said earlier bond proceeds were already spent on prior projects and that re-ranking (for example prioritizing the Aquatic Center) could boost a project's score next application cycle.

The district also reported an enrollment projection drop: current enrollment near 466 students is projected to drop to about 449.5 next year, which reduces state formula revenue under the Base Student Allocation. Baird said the drop, combined with flat BSA expectations, is a key driver of the FY27 budgeting challenge.

Next steps: The district plans summer security upgrades and will consider reapplying or reprioritizing projects for major-maintenance grant funding; officials encouraged public use of the budget simulation tool to inform the FY27 planning process.