Kalispell Public Schools is tackling an anticipated budget deficit in 2024-25 based on projections presented to trustees Tuesday.

The deficit could be upwards of $3 million, however, KPS Director of Business Services Denise Williams cautioned the projections are based on early estimates that she expects will change as the preliminary budget is developed. 

A final budget won’t go before the board for approval until August.

“There is certainly more work to be done,” Williams said.

With a superintendent search underway and a new business director starting in the winter, the district has assembled multiple committees to help formulate a plan to cover a shortfall.

The anticipated shortfall comes from a combination of factors such as failed levies, expected salary and health insurance increases, inflation and the expiration of Elementary and Secondary School Emergency Relief Fund (ESSER) money.

At first blush, KPS projects the elementary district general fund budget to be $23,981,332, an increase of $547,482 over this year’s budget. The high school district general fund is currently projected to be $24,887,677, a $794,243 increase over this year’s budget. 

The projections take into account an official enrollment count taken in October and estimates what the spring 2024 and Quality Educator counts will be.

Enrollment numbers are directly tied to how much state funding schools receive.

Even with the projected increases, it isn’t enough to cover anticipated salary increases alone, according to Williams and KPS Interim Superintendent Randy Cline, who noted that it is a negotiation year for certified staff (primarily teachers), custodians and maintenance staff.

Along with union negotiations, there are routine salary increases for teachers based on longevity and education level.

Cline said an elementary and middle school committee and a high school committee have been formed to review areas where the budget falls short, determine funding priorities and come up with possible solutions to recommend in balancing the budget. 

“The first thing is the committee is not going to make specific recommendations, for example, they’re not going to recommend that we cut certain programs or we eliminate certain teachers. Those decisions are up to the board and based on recommendations they get from the administration,” Cline said. “They will look at the overall picture and come up with some ideas.”

ONE FACTOR affecting the budget is covering technology, safety and security costs that remain despite failed levies. Additionally, an existing $1 million elementary technology levy sunsets in June 2024. The district will need to decide whether or not to hold another levy election in May 2023. 

“If we don’t address that, we’re gonna have to move those costs over to the general fund most likely and then that of course will create a domino effect …” Cline said.

Regarding the safety and security of schools, Cline said another committee has started meeting to go through the results of a safety and security audit completed last year, to see what can be accomplished through the general fund if the district doesn’t go forward with, or pass, another levy request.

Cline also spoke to the expiration of ESSER funding.

“We’ve actually done a fairly good job in transferring some of the ESSER funds that we were using back into the general fund and so we’re not looking at huge cuts because of ESSER like some of the other school districts are,” he said.

In covering deficits, the district will look at how much money is available in the interlocal fund that isn’t earmarked for other things such as building improvements (replacing gym floors and bleachers)  and textbook purchases. The interlocal fund typically contains remaining year-end money from both the elementary and high school districts. The district will also review any places where extracurricular activities can be reduced without impacting programs.

WILLIAMS’ LAST day as business director and clerk for the district is Dec. 22. She accepted a position as an accounting supervisor at Missoula County Public Schools to be closer to family. She will be replaced by Chris Campbell, who is the director of business and human resources at Evergreen School District. His salary will be $121,583.

Prior to his position at Evergreen, where he has worked for the past four years, Campbell was a licensed brokerage associate with Wells Fargo and business manager for Youth with a Mission Montana.

“I think my unique skill set is not just the finance side of things in school finance… I think to succeed in school finance you have to have good information systems knowledge and management ability. And that’s, I think, one piece that I bring that’s maybe a little bit unique and I look forward to partnering with the tech departments,” Campbell said.

“That way, you guys have 17,000 general ledger account codes. Trying to consolidate that information down into readable, actionable information is something that I think I excel at and so I’m just really excited to pick up where Denise has left off and work with this team.”

Three candidates were interviewed for the position out of seven applicants. 

Reporter Hilary Matheson may be reached at 758-4431 or hmatheson@dailyinterlake.com.