New Rochester Schools Will Further Challenge District Finances
Rochester, MN (KROC-AM News) - The Rochester School Board will be briefed this evening on the school district’s financial outlook for the next few years.
The report, which looks out 5 years, suggests the Rochester Public Schools finances should be in pretty good shape for at least the next couple of school years but school officials caution the forecast does not factor in the added operational costs associated with opening the new schools approved by voters in November, which will occur during the 2022-2023 school year. An update factoring in those costs is expected in May.
The Five-Year General Fund Financial Forecast projects the school district will finish the current school year with a reserve equal to about 8.5-percent of total expenditures, which is well above the 6-percent minimum set by the school board. The reserve balance is predicted to remain fairly stable next school year before dropping to a still-healthy 7.1-percent for the 2021-2022 school year.
The reserve fund is forecast to drop below 6-percent the following year, and without revenue or spending adjustments, vanish by the end of the 2024-2025 school year when the school district would face a projected deficit $7.3 million budget deficit.
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