Nov. 17—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.