HCSB discusses financials 

HANNAH COLLINS | The Advertiser

The Holmes County School Board convened February 11 and had critical discussions regarding the district’s financial situation. Keith Spence, president of School Finance, presented the financial report and provided insight into the district’s current economic standing.

Spence and his team, contracted through School Finance in Bonifay, were brought in last year to manage the district’s finances after HCSD was unable to secure a finance director. Addressing the board, Spence acknowledged the district’s financial outlook, stating, “For the time of the year and the point we are at with our finances, the numbers are looking okay. But we’ve always talked about what we’re expecting.”

Spence outlined three major financial points that could impact the district moving forward. Spence highlighted an expected decrease in student enrollment, which directly affects state funding. While final enrollment numbers from the state have yet to be confirmed, Spence estimated a drop from 3,116 to 2,980 students. “That is one thing that will affect us tremendously,” he emphasized.

The district’s payroll cycle was another point of concern. Spence explained that payroll payments are not distributed evenly over 12 months, creating heavier financial burdens at certain times of the year.

Additionally, the district still owes $206,000 in insurance payments, which include property, casualty, and worker’s compensation coverage. Spence also noted that the district is lagging in revenue and federal project funding.

Despite these financial concerns, Spence shared some positive news. The district’s food service budget has seen a slight turnaround, shifting from a deficit in recent months to a modest surplus. He also highlighted the success of the district’s internal service fund, which has generated significant revenue, roughly equivalent to funding for 15 students. With the goal of financial stability, Spence has met with district principals to work towards balancing the budget.

Superintendent Buddy Brown proposed strategies to reduce district expenses. One key suggestion was cutting the use of substitute teachers for short-term absences, noting that while long-term leave situations would still require substitutes, reducing their use for brief absences could lead to substantial savings. “If we halve the cost of our subs right now, we would save $150,000 per year,” Brown estimated.

Brown also recommended evaluating the necessity of certain school clubs. He questioned whether clubs with minimal student participation should continue to receive funding. “Does a school need to have a club that has six people in it that are not doing any of the things?” Brown asked. “No. That’s a hard decision, but the answer is no. It starts adding up.”

With the district’s contract with School Finance set to expire in April, the HCSD has approved the hiring of Lauren Dee as the new finance director, aiming at a continued focus on fiscal responsibility.