Springfield Public Schools is preparing for a return to normal funding levels without the boosts provided by federal COVID aid.
The Springfield Board of Education got its first look at the budget for the upcoming school year during its meeting Tuesday. It was the first of several times the board will examine the budget with administration members before its final consideration on June 25.
Cara Stassel, executive director of business services for SPS, said that federal funding has given the district plenty of financial padding. The district’s unrestricted ending fund balance on an end-of-year report from June 30, 2023, was at 28.93%, she said. That amount is usually at 17% to 18%.
“Over the last several years, the district has experienced a higher than normal fund blalance due to the influx of federal stimulus funds related to COVID-19,” Stassel said. “As the end of the stimulus funds draw near, the district’s fund balance will also begin to return to a normal level.”
In the current fiscal year, local taxes are expected to generate $201,327,792, or almost 62%, of the budget. State funding is the next biggest source, with a projected $89,073,033 (about 27%).
Federal funding of almost $32 million is also expected, in addition to more than $29 million in COVID-related ESSER funds. Stassel said that money must be spent by October.
Salaries and benefits are expected to take up almost 79% of the budget, Stassel said, with a projection of $285,525,967. Stassel said this percentage is closely watched in order to address teacher recruitment and retention.
“Too high means you’re probably giving too much in raises,” Stassel said. “Too low, below 80%, means you’re likely not giving enough.”
The district is in a non-reassessment year for property taxes, which means no increase in local taxes. But Stassel said historical data suggests an increase in new construction growth that can provide some increases.
A pandemic provision for getting state funding based on attendance will remain for one more year, Stassel said. Payments will be calculate based on the weighted average daily attendance of either fiscal year of 2023, 2024 or projection of 2025 – whichever is larger.
The district’s attendance continues to be lower than fiscal year 2020, Stassel said, but the state budget recommends an increase in its state adequacy target. It could increase 6%, from $63.75 per weighted average daily attendance to $67.60.
“This target has remained unchanged for five years,” Stassel said. “However, salaries, benefits, purchases, services and supplies have continued to increase.”
Additional budget meetings are planned throughout April and May to better develop projections. This includes a bargaining procedure with the Springfield NEA, the union that represents most of the district's teachers. An initial framework was approved by the board in February.
The final budget is expected to be presented on June 25 for the board’s approval.
