23 May 2024
DULUTH — Over the last three public meetings, the Duluth School Board has gotten a clearer view of next school year’s proposed budget. The district is continuing down the path of creating a balanced budget by utilizing money in the general fund and making reductions to make up an anticipated $6.4 million deficit.
At the committee-of-the-whole meeting on May 7, Simone Zunich, director of business services for the district, presented the budget proposal to the board. She’d previously outlined a few factors impacting the budget next year, including:
The federal government’s Elementary and Secondary School Emergency Relief fund dollars are being phased out, a change of $9.6 million.
A potential decline in enrollment is forecast at about 100 students annually for the next five years, which impacts the amount of money the district gets for average daily membership.
Increased costs in salaries, benefits, utilities, transportation, food and contracted services.
Increased costs due to a shift to the middle school model and seven-period days at the high school.
“We’ve known that this was coming, so we are going to do the fiscally responsible thing to make sure we’re using taxpayer money in the best way possible,” said school board member Kelly Durick-Eder. “This move this year reflects a $2.5 million conscious decision by this board to change the way we educate our middle and high schoolers. We’ve built our fund balance over the years, so we can use it in this time to pay for those decisions.”
Superintendent John Magas said at the regular board meeting Tuesday that the district is looking at the budget in two phases. This fall will see the first phase, with “non-personnel budget reductions,” including “oversight on travel, overtime, stipends, reducing contracted services.” This will account for about $2.3 million in reductions. The rest of the year’s deficit will come out of the district’s general fund balance.
Phase two, the 2025-2026 fiscal year budget, will likely need greater reductions. Magas said that once the proposed 2024-2025 budget is passed, the district and board will start working on creating a timeline to gather input from students, staff, and the community to guide reductions next spring.
The proposed budget is set to be presented again with possible updates and changes at the next business services and human resources meeting on June 11 before going for a second reading at the June 13 committee of the whole. The budget is set for adoption at the regular board meeting on June 18, as all districts must submit their budget to the state by June 30.
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