Like similar school districts across the country, City Schools has faced a budget gap the past several years as expenses rise while revenues either remain flat or decrease.
With support from the foundation community, City Schools has been working with an outside firm with expertise in school funding to take a deeper look into the district’s financial situation and to help explore creative solutions that will have a lasting impact on financial stability.
In the past, City Schools focused on closing the budget gap with short-term solutions, like
- laying off employees, mostly at the district office
- drawing from the fund balance
- reducing the use of contracts
- spending and hiring freezes
While these solutions were necessary, they did not address the fundamental issue: Until the underlying expense or revenue structures are changed, City Schools will be faced with similar budget gaps in future years.