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Budget Adjustments for 2024-25

Proposed Budget Adjustments for 2024-25

District 564 is currently in the planning stages for budget reductions for 2024-25.

  • The state recommendation for a healthy fund balance is 15% of the district's total operating costs.
proposed budget reductions 2023
  • District 564 currently holds about 13.6% of our fund balance.

 

  • Although projections for 23-24 show that we will be steady for this year, if reductions are not made at this time, the fund balance will be cut in half by the end of 24-25.
    • This would leave only 7.6% in District reserves, which is about half the recommended amount.

This is a result of many funding factors including:

  1. Extra grant money such as ESSER II funds (commonly known as COVID funding) no longer exists.
  2. District 564 has not had a voter-approved operating referendum in place for the past two years.
  3. Two recently failed operating levy referendum requests failed, meaning Thief River Falls has $0 per pupil unit added as a result of a voter-approved levy.
    1. Even with an increase in state funding last year, current formulas are not matching inflation rates (As you know, it costs more to do business right now). The increased amount was appreciated, but it does not cover the past 15 years of decreased funding that contributed to the current situation.
    2. As of Fall 2023, 70% of rural districts had an operating levy in place. This includes all of our neighboring districts! In fact, the regional average of voter-approved levies is $1,207 per pupil unit.
  • Should the fund balance get below 2.5%, the District would be identified as being in a state of Statutory Operating Debt.
    • At that point, MN Department of Education would take over the District budget & determine what cuts are mandatory. We would lose all local control.
    • We desperately hope to avoid this situation!

 

As a Result, here are the proposed budget adjustments for 24-25:

Building/Department & Proposed Amount of Reduction

Click the department to expand & view more details.

Grand Total of Proposed Adustments: $1,231,932