Finance report: revenue tracking but FY27 shortfall looms; attrition yields $6.2M in tentative savings

At the May 20 meeting the St. Joseph School District finance director reported that revenues were tracking at just over 90% of the budget for the year while expenditures were at about 77.8%, a timing effect tied to scheduled June payrolls. The district expects to present a preliminary FY27 budget in June but said it must account for a projected $3.5'$4.0 million shortfall resulting from incomplete state funding.

Administration also presented a staffing update: through May 20 the district estimates roughly $6.2 million in personnel savings attributable to attrition and unfilled positions. The reductions cited in that tally included two district administrators, five building administrators, 57 teachers and three administrative assistants. Officials cautioned that those figures are preliminary and that continued resignations and reassignments will change final projections.

On benefits, the district said its self-insured healthcare trust ran slightly negative for the month but retained a $5.48 million balance that staff said is sufficient to monitor claims through the summer. Finance staff reiterated that June payroll timing accounts for much of the gap between revenue and expenditures.

Next steps: The business office will produce the June preliminary budget and a final FY27 amendment in October when state valuations, tax rate and finalized enrollment data are known. The board asked administration to return with staffing and budget scenarios that reflect the current attrition and the possible state funding outcomes.