The Douglas County School District is considering significant measures, including school closures and staff layoffs, to address a multi-million dollar budget deficit. During a special meeting this week, the school board reviewed proposals that could impact several elementary, middle, and high schools as the district grapples with the financial fallout from years of declining student enrollment.
Officials are facing a $5.2 million shortfall for the current fiscal year, with projections indicating the deficit could grow to $6.9 million by 2027. The proposed cuts are part of a difficult plan to achieve financial stability and avoid a formal declaration of a severe financial emergency.
Key Takeaways
- The Douglas County School District is facing a $5.2 million budget deficit this year, which could increase to $6.9 million by 2027.
- Proposals include consolidating up to five schools, which could save an estimated $2.28 million annually.
- The district plans to cut up to 60 positions, starting with 10-11 classified staff members as early as next month.
- Declining enrollment is the primary cause of the financial strain, with the district losing approximately 1,000 students over the past seven years.
Drastic Measures on the Table
In a packed meeting room, Superintendent Frankie Alvarado presented three distinct school consolidation scenarios to the Board of Trustees. He acknowledged the emotional weight of the proposals, stating, "It hurt my heart" to develop plans that would reshape local communities. The options presented aim to reduce operational costs and streamline resources.
Consolidation Scenarios
The board is evaluating three potential consolidation plans:
- Northern County: Merging Jacks Valley Elementary and Pinion Hills Elementary, with an estimated annual saving of $938,762.
- Southern County: Combining Scarselli Elementary and C.C. Meneley Elementary for an identical saving of $938,762 per year.
- Lake Tahoe Area: Consolidating Zephyr Cove Elementary with the existing Whittell middle and high school campus. This move is projected to save $188,013 annually but would require significant retrofitting costs to accommodate younger students.
If the district moves forward with all three scenarios, the total annual savings would reach approximately $2.28 million. However, this amount only covers a portion of the current $5.2 million deficit.
The Root of the Problem: Declining Enrollment
The financial challenges facing the district are directly linked to a steady decline in student numbers. Over the last seven years, enrollment has dropped by about 1,000 students. The district currently serves approximately 4,700 students with a staff of around 480 employees. This shrinking student base has resulted in reduced state funding, creating the current budget gap.
Impending Staff Reductions
Alongside school closures, the district is preparing for a reduction in force (RIF). Superintendent Alvarado confirmed that up to 60 positions could be eliminated this year to help balance the budget. The initial cuts are expected to happen quickly.
The first wave of layoffs could affect 10 to 11 classified, non-teaching employees by mid-February. These staff members can be let go with a 30-day notice. Teachers and other certified staff have a 40-day notice period as stipulated by their contracts, making their positions slightly more secure in the immediate term. The deadline to notify administrators of layoffs has already passed.
"We can’t just focus on the negativity," Superintendent Alvarado said, emphasizing that the goal of consolidation is to "focus on reducing overhead costs that would give them high-quality teaching and learning."
Community Calls for Alternative Solutions
During the public comment portion of the meeting, many community members and staff urged the board to look beyond cuts. Speakers repeatedly called for the immediate hiring of a Chief Financial Officer (CFO) to provide expert financial oversight and explore new revenue streams, such as maximizing Medicaid reimbursements.
By the Numbers: The Financial Challenge
- Current Deficit: $5.2 million
- Projected 2027 Deficit: $6.9 million
- Potential Savings from Consolidations: $2.28 million annually
- Potential Staff Cuts: 60 positions
- Student Decline: 1,000 students lost in 7 years
Other suggestions included developing strategies to attract new students, including those currently homeschooled or attending schools in neighboring districts. The idea of implementing multi-track, year-round school schedules was also raised as an innovative way to use facilities more efficiently.
Concerns were also raised about the accuracy of the district's data. Officials acknowledged an ongoing software update is needed to properly account for 660 students who live within district boundaries but do not appear in current systems. This discrepancy has fueled frustration among parents and staff seeking a clear picture of the situation.
A Tight Timeline for Tough Decisions
The school board is operating under significant time pressure. A decision on whether to proceed with school consolidations must be made before the February winter break to allow time for planning, including public meetings to redraw school attendance boundaries for the next academic year.
In an effort to improve transparency, the district announced it will launch a dedicated webpage to share clear data and updates on the budget situation. The ultimate goal, according to Alvarado, is to present a plan to the Nevada Department of Taxation that demonstrates the district can achieve a "net zero" deficit.
The Board of Trustees will continue these critical discussions at their next meeting, scheduled for January 15.