Buffalo Public Schools is in a financial situation where it’s reporting a $73.5 million deficit.
However District Chief Financial Officer Jim Barnes said it's substantially lower than what was approved in the current budget by the school board.
“Our approved budget was for an $83.5 million deficit," said Barnes. "I produce quarterly reports of actual financial results, plus a projection for the remainder of the year. At the end of the second quarter, my projection showed we'll have a $73.5 million deficit. So that's better than the approved budget."
BPS has a $400 million reserve, which is where money is being drawn from to close this deficit. But if the district continues to rely on this, Barnes believes it could have major implications.
Last year the district already laid off 30 staff, did not fill dozens of positions after retirements, and put a hiring freeze on almost 200 vacancies. Barnes said going forward, staffing is still something they’re looking at from a financial perspective.
“It was a two year plan," he said of the last round of job losses. "So next year, '25-'26? No, we need to now review all the staffing at all the schools once again and cut where we can in terms of retirements and vacancies. So there's still going to be a robust review of our staffing levels.”
Closing schools is also something that is on the table. As current BPS Superintendent Tonja Williams Knight nears retirement, it’ll be a challenge left for whoever succeeds her. Barnes said incorporating data will be an important tool.
“Enrollments, contract cost increases, benefit cost increases over a multi-year projection that takes our current decisions and shows their impact on our fund balance," said the finance chief. "For example, $83.5 million deficit. Well, you couldn't do that every year, you'd run out of fund balance. So issues that have to be addressed in this updated four year plan? We have to fix the structural deficits. We cannot keep reporting $83 million deficits, and we have to close schools.”
The new school budget is expected some time in May.
