Approval of the FY 22 Budget Reduction Plan

Since November 2020, the district leadership team has been working to develop a budget reduction plan for the 2021-2022 school year.  Largely due to a loss of revenue related to a significant enrollment drop during the COVID pandemic, the district has identified $7,560,380 of reductions in order to balance the FY 22 budget.  The goal of this plan is to stabilize the district’s budget, and create a long term structurally balanced financial plan.  School Board members have been updated throughout the process.  The Board Finance Committee met on March 18 and a full Board conducted a work session on March 25.  In addition to all principals and program leaders, the district also received valuable input from an all-staff survey and two webinars that were held during the week of March 29.  The recommended plan being presented tonight incorporates much of this input from staff and the School Board.    

School Board Policy 723 establishes a minimum fund balance goal of 8.0 percent, which is 30 days of operation.   At the end of the current 2020-2021 year, the district anticipates the total general fund balance to be at 1.6 percent, which is six days of operation.  This recommended plan will put the district in position to begin rebuilding its fund balance to achieve policy compliance.  Tonight's presentation earlier this evening displayed the plan, and a summary version is attached below.

The Administration recommends the approval of the FY 22 Budget Reduction Plan as presented.  These reductions will become part of the FY 22 Preliminary budget, which will be presented to the School Board in June.