Financial questions remain ahead of Byron levy vote

If voters in the Byron School District don’t pass an additional $800 per pupil ballot question in November, officials have made it clear drastic budget cuts would be coming.

But what those cuts would be, and how much would need to be cut from the bottom line, won’t be available until after the election, Superintendent Mike Neubeck explained in a financial update Sunday night.

“I would like to take this opportunity to provide an update regarding the financial situation of Byron Public Schools. As many of you know, our business office has been working closely with Region V to verify the district’s financial standing for the 2023-24 school year,” Neubeck wrote. “Due to the number of items requiring correction and verification in both revenue and expenses, we have not yet been able to finalize our financial results. I understand that this may raise concerns, especially as we approach the operating referendum in November.”

Neubeck said the additional time needed is due to challenges from “having had two different business directors during the same school year, each with their own accounting systems. This situation has made it difficult to track and verify financial items.”

“Our interim Director of Finance, Julie Cink, who has extensive experience in school finance, discovered that some financial records were either incomplete, incorrectly processed, or, in some cases, not processed at all,” Neubeck said. “As a result, many entries had to be reversed and re-coded correctly, which has been a time-consuming process. This, in turn, has delayed Region V’s reconciliations and the finalization of our financial data.”

Due to the unexpected delay, the District was forced to delay its audit until Oct. 28-29.

“The audit will review our financial records and verify their accuracy,” Neubeck said. “The audited figures will not be available until after the November 5th election. We understand there are many questions about what specific reductions may be necessary if the operating referendum does not pass.”

Neubeck said during the fall, “two committees of staff and community members were formed to review potential budget reductions.”

“The committees, which include 16-18 members each, are evaluating the impact of these potential reductions on students, staff, and the community, while also considering additional revenue options with the goal of minimizing reductions,” Neubeck said. “Their input will be vital as we move forward in planning to regain financial stability.”

Depending on how the vote goes, Neubeck said the specific reductions needed will be determined.

“The specific reductions needed, should the referendum not pass, will be determined once we have finalized financial data,” Neubeck said. “Depending on the scale of the necessary cuts, some could significantly impact our district and community. For example, we may need to consider eliminating middle school athletics, reducing class options, and cutting back on support services. Since staffing accounts for 80% of our budget, it will be challenging to make reductions without affecting staff positions which could result in an increase in class sizes of 3 — 4 students per class across all grade levels.”

Neubeck explained that once the district has the verified financial information, and determines the dollar amount of reductions needed “the school board will pass a resolution directing the leadership team to develop a plan for the 2025-26 school year, using input from the advisory committees. These planning meetings will take place from November through February, with the goal of presenting finalized recommendations to the board by the end of February.”

“Passing the operating referendum this fall is crucial to minimizing or potentially eliminating budget reductions for the upcoming year. Regardless of the outcome, we are committed to using financial forecasting models to prepare for future challenges,” Neubeck said. “These models will help us continually assess our organizational needs, ensure we maintain an 8% fund balance, and increase cash reserves, all while providing the best educational environment for our students, staff, and community.”