The board discussed the district’s budget, noting a decrease of approximately $1.4 million, or about 3%, for the upcoming year. This reduction stems from a projected drop in student enrollment by 70 students, impacting state aid and tuition revenue. The state aid in the general fund is expected to decrease by around $400,000, while special revenue grants will see a reduction of $600,000. The board clarified that these reductions are not due to changes in federal policy but reflect the natural ebb and flow of grant funding.

Complicating the budget further is a projected increase in the total tax levy by just under 4%, attributed primarily to reduced state and federal aid linked to enrollment changes. The district anticipates a decrease in tuition revenue of nearly $1 million, further straining the budget. In contrast, miscellaneous revenues are expected to rise by approximately $120,000 due to improved interest rates from district investments.

On the expenditure side, nearly every line item is projected to increase due to inflation, salary hikes, and rising insurance rates. Notably, tuition costs for out-of-district placements are expected to rise by about $186,000. Administrative costs are set to decrease by around $800,000, largely due to the resolution of pending legal cases.

The board addressed the transition to electric buses, highlighting the arrival of seven new EV buses and the approval of a related lease agreement. This transition is part of a strategy to phase in and out buses.

Healthcare benefits are a concern, with a projected 15% increase. The district plans to utilize state provisions allowing tax rate cap exceedances in response to significant health benefit cost rises. The board emphasized the importance of strategic planning to address these financial challenges while aligning with educational needs.

Further discussions centered on enrollment trends and their budget implications. This trend affects tuition revenue, particularly from Edgewater, and influences state aid calculations.

The district’s budget of approximately $45 million relies heavily on local tax levies, federal and state aid, transportation funding, and tuition. Salaries and health benefits constitute about 80% of the budget, necessitating careful management of staffing to align with student needs.

Capital equipment projects were also highlighted, including roof replacements and high school electrical upgrades, funded through capital reserves and insurance recoveries. The board stressed strategic planning for future projects, emphasizing the need for thorough consideration of long-term impacts.

Community events and student activities were acknowledged, including the successful LMS wellness fair and Harlem Wizards game. An upcoming music department trip to Nashville was noted, along with the completion of state assessments.

The board discussed potential financial strategies, such as leveraging electric buses for advertising revenue and exploring partnerships for EV charging stations. They also explored potential charter-like options for student enrollment from neighboring districts.

The meeting concluded with a discussion on the superintendent search. The board moved into executive session to discuss this matter further, emphasizing the necessity of private deliberations for this topic.