The Carroll Community School District (CCSD) Board of Education continued the discussion from last month’s board meeting regarding lower the district’s unspent authorized budget (UAB) ratio and ways to cut spending to make that happen. Currently, the district has an UAB ratio of 32.43 percent, which is calculated by what is unspent from the districts authorized budget, which is determined mainly by certified enrollment and property taxes. Superintendent Dr. Casey Berlau says when it comes to lowering the UAB ratio, it starts with the districts authorized budget, which is controlled by two things.
The negative number that Berlau is referencing is the solvency ratio, not actual cash or fund balances. The ratio is a percentage measuring how much the district has on hand versus expenditures and the financial breathing room if revenues stopped coming in. If the district’s solvency ratio gets below a certain number, the district is allowed to levy cash to help build back up reserves. Director of Business Affairs Nicole McCarville says levying cash to address the solvency ratio would be easier to solve than the attempting to bring down the UAB and end up not having enough spending authority for expenditures. In context, the recommended UAB ratio is between five and 15 percent, but McCarville says many districts go well above that. For the district to lower the current UAB to 25 percent, a total of $1.26 million will need to be removed from expenditures or increased with revenue by Fiscal Year 2030. Berlau says when making reductions in expenditures, a lot is focused on staff as salaries and benefits as that generally makes up 80 percent of the budget. Other ways to adjust include operational sharing or offering a retirement incentive. Data regarding the 21 staff that would qualify for the incentive was requested for the next board meeting to see if there would be any potential savings. Board member Jim Friel says the board and administration team are really going to have to look at the staffing plan and make some tough decisions if the goal is to lower the UAB.
Friel also questioned if administrative assistants are necessary, if Adams Elementary could share the principal position with another role and if administrators should be required to pay portion of health insurance like the rest of the staff do. He asked if by reducing cost cutting excessive staff if the district could then offer pay raises for teaching associates. Board member Jill Johnston says that will not help the UAB ratio.
Johnston encouraged all to reach out to local legislators to push for more Supplemental State Aid (SSA) as current proposed increases of 2 percent from Gov. Reynolds and 1.75 percent from a Senate subcommittee, as that will increase revenue for the district. Discussion involving staff and budget will continue as FY27 certified budget preparations are underway.
