District 91 seeks community input to help resolve $4M deficit

IDAHO FALLS — Idaho Falls School District 91 is looking for community feedback as it anticipates the need to cut $4 million from next year’s school budget.

“(Previously) we had a pretty healthy savings account, and so (administrators) were able to take that out of the savings account,” Idaho Falls School District 91 Superintendent Karla LaOrange said. “But we’re at the point now where we’re making sure we have enough for operating costs.”

For the past two years, the district has used savings from its reserve fund to cover $4 million each year in additional expenses for students — including graduation rate support, student concerns returning from COVID and staff salaries, LaOrange said.

The district is moving forward by meeting with “teachers, staff, parents, patrons” and concerned community members at 6:30 p.m. Wednesday at Skyline High School’s cafeteria to discuss recommendations for potential cuts, according to a district notice.

“Many people who come will be teachers, so it affects them in their workplace and how they serve kids,” LaOrange said. “We’ll have parents. It affects how we serve their children, and they’re invested in their children. Then we’ll have some patrons come too that don’t have children in our system. We really value them as well, because they are the businesses and the community members that support us at such a high level.”

However, district leaders have determined the current path is unsustainable.

In fiscal year 2023-2024, the district’s total budget was $94.9 million — meaning the cuts represent 4.21% of total funds, according to Idaho Falls School District 91 Director of Finance Lanell Farmer.

“We’re holding the meeting because the board and I both value public input,” LaOrange said. “… We want to partner with them as we take a look at what are some of the items that we should consider in a budget cut. … (For) next year, we’re working very hard to tackle all of this through attrition.”

Guests will be divided into groups that will prioritize their top 10 programs at the elementary, middle school, high school and district levels.

Attendees will learn about the district’s expenses, as well as money tied to federal or state funds that cannot be allocated to other resources, and funds reserved for contracts such as benefits or insurance, she said.

She cited payroll as an example, where the district first funds teacher and employee salaries and then is reimbursed by the federal government.

“You have to have enough in your savings account to be able to do that because payroll for us runs $5.5 to $6 million a month,” LaOrange said.

Additionally, some state revenues haven’t come through yet this year, causing the district to dip into its reserves.

Farmer said the cuts are required in part by a change in how the state of Idaho funds education. This year, the state transitioned back from the enrollment-based funding model instituted during the COVID-19 pandemic to the previous Average Daily Attendance system, which is impacting how much revenue school districts receive in Idaho.

“Prior to COVID, districts were usually around 95% to 96% attendance,” Farmer said. “Post-COVID, Idaho-wise, it’s been high 80s, low 90s, and that makes a big difference.”

Additionally, the district had qualified for federal Elementary and Secondary School Emergency Relief Fund funds as part of the Coronavirus Aid Relief and Economic Security Act passed by Congress in 2020. Those funds will not be available next year.

While final revenue projections from the state have not been provided yet, the district anticipates that the cuts will be necessary.

At the start of fiscal year 2022 to 2023, the district held reserve funds totaling $15.3 million. This year, reserves had dropped to $11.5 million.

LaOrange is confident in the Board of Trustees, Farmer’s skills and her own abilities to help right District 91’s budget ship along with public input. Both LaOrange and Farmer are completing their first school year in their positions.

“Lanell has done a fabulous job to turn this district around financially,” LaOrange said. “We are in really good hands.”

The meeting builds on an earlier event with the same format, attended by 45 individuals (not including district administration) on March 11 at Taylorview Middle School.

Individuals who would like to participate but cannot attend Wednesday’s meeting are invited to use the digital Thought Exchange platform to provide input online.

“We are interested in their feedback, as long as they understand that the decisions are ultimately up to the board to decide, but their input is important,” Farmer said.