At the November 8 school board meeting, Penta Treasurer Michael Harrigan presented the five-year budget forecast for 2024-28 as required by state law and updated the board on recent finances. He reminded the school board that “it is difficult to prepare a five-year forecast when the state funding is not an absolute from fiscal years 2026 and beyond.”
He added, “The forecast is based on data and information available at the time using historical and current information.”
Board member Paul Walker, chair of the finance committee, believes the career center is doing well financially, noting that revenues are up this year. However, he pointed out expenses also have risen with salaries and benefits. “Overall, I think we are in pretty good shape.”
This year’s budget calls for revenues of $38.89 million with expenditures projected to be $40.08 million. The treasurer expects the district to finish the year June 30, 2024, with a cash balance of $15.48 million.
In 2025, the district is predicting revenues of $43.27 million and expenditures of $40.21 million. Beyond that time, Mr. Harrigan is showing only a slight increase in revenues with it topping out at $45.96 million in 2028. In contrast, expenditures will climb from $40.07 million in 2026 to $46.6 million in 2028. As a result, the cash balance is projected to be $18.9 million by 2028.
Contributing to the increase in expenses will be salaries, which are only known through current labor contract periods. The certified staff contract runs through June 30, 2025, and classified bargaining units contract is effective through June 30, 2026.
Health insurance benefits also are expected to increase over the next five years and discretionary expenses such as repair and maintenance, travel and supplies are predicted to rise.
