Great Falls Public Schools officials walked school board members through the upcoming budget during their Aug. 15 work session.

The board will formally consider the budget for adoption during their Aug. 19 regular meeting.

Taxable valuations increased in the district, but since the state funding formula sets dollar amounts largely based on enrollment, that means the district will levy fewer mills for the budget year that began July 1.

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Brian Patrick, GFPS business operations manager, told board members that the impact to taxpayers for the upcoming budget year would be $75.27 less on a house with a $300,000 taxable valuation.

He said the amount property owners are paying into the district has decreased each of the last few budget years due to the increased valuations, but the state funding formula doesn’t allow the district to generate enough revenue without levies to keep up with expenses.

The taxable valuations for the GFPS districts for the 2024-2025 school year are:

• $182,603,795 for elementary, an an increase over last year of $1,136,385
• $185,329,633 for high school, an increase over last year of $1,199,472

The combined elementary and high school budgeted funds, including debt service, for the 2024-2025 budget total $118,435,253, an overall increase of $2,568,123 over last year, according to district numbers.

For all budgeted funds, total mills for the 2024-25 school year are 193.33 compared to 207.07 the previous year, a decrease of 13.74 mills.

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Patrick is projecting a roughly $2.5 million shortfall for this budget year, but is recommending carrying over some federal COVID relief funds to offset the deficit.

Patrick told the board that they often hear that the district should use reserves to cover any number of expenses or pay for additional staff, raises or programs.

But those reserves serve “a pretty particular purpose” and are restricted under state law as to their use and that the law requires the district to maintain a reserve sufficient to pay the bills.

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Over the last decade, expenses have continued to increase, in part due to inflation and raises for teachers to address recruitment and retention, but revenues have not kept pace under Montana’s current public school funding formula, Patrick said during a July board budget committee meeting.

For the 2025-2026 budget year, Patrick is projecting a $3 million shortfall.

The district is also scheduled to update its math curriculum in the upcoming budget year at an estimated $1.5 million and the science curriculum is scheduled to be updated in the 2026-2027 budget year at an estimated $2 million.

Patrick said that staff plans for those expenses to budget accordingly rather than being surprised.

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In March, the GFPS board voted unanimously to forgo a levy this year and also restructure the district administration to cut an assistant superintendent position in an effort to begin cutting costs knowing the budget challenges on the horizon.

In a worksheet for the budget committee to review during their July meeting estimated shortfalls and known major expenses, Patrick included ideas of options to lower the deficits that include permanent budget cuts, analyzing vacant positions and planning for levies.

Since Heather Hoyer was selected as the new superintendent, effective July 1, she and the other assistant superintendents restructured their tasks and eliminated the position Hoyer formerly held, saving about $162,686.

Patrick told the board during their Aug. 15 meeting that the the upcoming legislative session that begins in January could have significant impact on school finances.

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This year also has a lot of internal transition at the district, he said, including a new superintendent, new technology director, one less assistant superintendent position and the loss of some other key staff such as knowledgeable administrative assistants.

The one time federal COVID relief funding is running out, inflation continues and the Calumet tax protest are also factors in this budget, Patrick said, among other factors.

Administrators are also watching tuition for out of district students.

Previously parents paid that tuition directly to GFPS, but legislative changes now require that GFPS pay other school districts who provide group home programming for resident students.