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Caddo Parish School Board Reviews $426 Million Budget Proposal

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Caddo Parish School Board members discussing budget proposals

News Summary

The Caddo Parish School Board is assessing a $426 million budget proposal amidst declining student enrollment.

Shreveport, Louisiana – The Caddo Parish School Board is currently assessing a proposed draft budget of $426 million for the general fund for the fiscal year 2025-26. A dedicated budget work session is set to take place on Tuesday at 2 p.m. to review the budget proposal in detail, followed by a final vote later this month. As part of this review, the board faces significant challenges amid a continuous decline in student enrollment, which has persisted for the past 15 years.

The proposed budget includes a noteworthy reduction in special revenue fund expenditures, dropping from $352 million to $87 million. Conversely, the general fund and other related capital project funds and debt service funds show minimal changes compared to the previous year. The anticipated revenues for the general fund are estimated to be $426 million, with the breakdown being $245 million from local sources, $177 million from state sources, $4 million from federal sources, and $50,000 from other sources. Furthermore, the recently proposed budget is balanced, with projected expenditures expected to match the revenues.

Despite the efforts to balance the budget, Caddo Public Schools Chief Financial Officer Jeff Howard has projected a loss of approximately 750 students for the upcoming school year, continuing a downward trend seen over the last decade and a half. Historical enrollment statistics reveal a steady decline, dropping from around 42,341 students in 2010 to the current enrollment of 32,614 students. This loss has prompted the school board to implement several school closures across the parish and make corresponding adjustments in the budget.

Recent actions taken by the school board included the closure of three schools, which is projected to save around $1 million annually. School Board President Jasmine Green underscored the financial implications resulting from the dwindling student population. The budget projects total expenditures for instructional services at $279 million, also outlining costs of $9 million for general administration, $22 million for school administration, and $51 million for operations and maintenance.

Regarding funding sources, approximately 57% of the expected revenue is anticipated to be derived from local sources, while 41% will come from state sources, with a modest 1% generated from federal contributions. The current millage rate remains at 55.8 mills, with no expected changes. Additionally, the school board anticipates maintaining a sales tax rate of 1.5%. The budget outlines expected revenues of $126 million from property taxes and $106 million from sales tax.

The budgeting process commenced in December, followed by departmental reviews in January. A working draft was made available to both the board and the public by May. A public hearing aimed at finalizing the budget is scheduled for June 17, preceding the official vote. Concerns regarding the absence of pay raises in the proposed budget have been raised by numerous teachers and school board members. The need for competitive salaries to retain quality educators has been emphasized, showcasing the challenges present within the current educational financial landscape.

In summary, the Caddo Parish School Board is grappling with significant budgetary considerations against a backdrop of ongoing declining enrollment and a pressing need for fiscal stability. As discussions develop, decision-makers will aim to finalize the budget by July 1, navigating the complexities inherent in managing the district’s financial future.

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