HSE Schools provides financial update & launches new finance webpage

Submitted by HSE Schools

A financial update was presented to the Hamilton Southeastern (HSE) Board of School Trustees Wednesday, May 13, highlighting ongoing cost-saving efforts, staffing adjustments tied to enrollment and a new resource designed to make school finance information more accessible to the public.

The presentation follows HSE Schools’ earlier announcement that 18 K-6 teaching positions were identified through a reduction-in-force (RIF) process due to continued enrollment decline. Since that time, six teachers have been removed from the RIF list as additional staffing changes, retirements or resignations have allowed HSE to recall affected teachers.

District leaders emphasized Wednesday that the RIF process is one part of a broader financial response and not the only action being taken.

“Over the last two years, HSE Schools has emphasized prudent spending and financial oversight, not only when budget challenges arise, but as an ongoing expectation of being good stewards of the funds available to us,” HSE Schools Chief Financial Officer Tim Brown said. “Thoughtful spending decisions are part of our responsibility to students, staff, families and taxpayers.”

Additionally, HSE Schools has taken several steps to reduce costs and improve efficiencies. Those efforts include a focus on high-deductible health plans and health savings accounts, negotiation of contracts upon renewal, department-level efficiencies, position absorption, a complete telecom audit, additional partnerships with the city, and salary hold decisions for the 2025-26 school year.

The district has also reviewed or renegotiated contracts upon renewal, including financial software, custodial services, copy machines, employee health clinic services, property insurance and food service maintenance.

Still, declining enrollment and recent legislative changes have created additional financial pressure. HSE Schools has experienced a steady enrollment decline since the 2020-21 school year, including a decrease of 863 students, or 4.1 percent, over the last three years.

The reduction in K-6 classroom sections for the 2026-27 school year reflects a 4.1 percent decrease, aligning with the district’s enrollment decline over the last three years. Because teacher salaries and benefits represent 65 percent of the 2026 budget, staffing adjustments are a significant part of the district’s overall financial response.

Of the current personnel reductions being made, 66 percent of the salary and benefit amounts are tied to K-6 teaching positions. In addition, more than 40 districtwide non-teaching positions are also being reduced as part of the overall budget response.

“All departments and areas within the district are working together to support the reductions that are necessary,” Superintendent Dr. Matt Kegley said. “This is an ongoing process that changes regularly. The information shared at tonight’s board meeting reflects where things stand today, but we know staffing and budget details will continue to shift before the first day of the 2026-27 school year.”

A summary of the work completed by the district’s budget task force over the last three months was also shared. The task force, which included teachers, administrators, department leaders and school board representation, was charged with identifying a minimum of $5 million in ongoing cost reductions.

Collectively, the recommended steps and personnel decisions represent a potential impact of more than $7 million. Future formal recommendations related to potential fee charges are expected to come before the School Board in June.

“The Board understands the weight of these decisions and the impact they have on our staff, students and families,” HSE School Board President Tiffany Pascoe said. “At the same time, we have a responsibility to ensure HSE Schools remains financially stable and prepared to serve students well into the future. We appreciate the work that has gone into this process and remain committed to transparency as these conversations continue.”

Also included in Wednesday’s update, a new district finance webpage designed to help families and community members better understand school finance was unveiled.

The page includes background information on school funding, revenue sources, school funds, legislative updates, and frequently asked questions. It also features a high-level monthly financial report showing expenses and revenue in each of the three major funds, along with yearly comparisons. More detailed financial reports for each of the three major funds are also available and will be updated monthly.

“This finance webpage is designed to be a resource for our families, staff and community members,” Brown said. “School finance is complex, and we want to provide information in a way that is transparent, accessible and useful.”

The new finance webpage can be found at hseschools.org/finances.