Enrollment drop shows up in School Board budget

CENTERVILLE — The St. Mary Parish School Board on Thursday adopted a 2025-26 budget that shows the effects of declining enrollment and a resulting decline in state aid.
Also, the board renewed the Medicare advantage plan that covers Medicare-eligible retirees and voted to pay the $400,000 cost of a premium increase without requiring higher contributions from covered members.
But the board will wait to renew the Blue Cross health plan that covers current employees, hoping for a break on what would otherwise be a 5% increase in premiums for next year.
The combined budget adopted on a voice vote without objection Thursday includes the district’s general fund plus special purpose categories such as maintenance funds, food services, federal programs and debt service.
The combined budget anticipates $121.9 million in revenues and spending of $127.9 million. That will reduce the overall fund balance by about $6 million to $50.8 million.
In the general fund, the biggest category and that one that covers most day-to-day operations, the budget forecasts revenue of $94.6 million, about $1.2 million less than expenditures. Even after covering the shortfall, the fund balance will stand at $39.6 million, enough to cover general fund expenses for more than a third of the year.
The revenue estimate is based on a slight decrease in property tax income and a 2.5% increase in sales tax collections.
The state Minimum Foundation Program funding will also be down, according to the administration’s budget message. Total state funding amounts to about $47 million per year.
“This budget reflects a decrease in MFP revenue due to a loss of students,” the message said.
First-day enrollment Aug. 7 was at 7,021, down 153 students from last year.
The School Board will soon ask voters to renew a .45% sales tax used to support the salaries of teachers and other staff members. The tax raises $5.1 million a year, according to the renewal ballot language.
Early voting runs Sept. 27-Oct. 4, excluding Sunday. Election day is Oct. 11.
Also Thursday, insurance consultant James Perez said Blue Cross/Blue Shield of Louisiana is seeking a 5% premium increase for covering school system employees in 2026.
Health insurance premiums amount to about $1.1 million per month. A 5% hike would cost the board another $662,000 a year.
“Most of it is driven by the prescription drug cost trend,” Perez said.
Monthly prescription drug claims have ranged from $446,000 per month to $608,000 this year and regularly exceed the total for medical claims.
But Perez said he’s seeking an adjustment based on the way premiums are calculated and on the elimination of Humira as a covered medication beginning Jan. 1. He’s hoping the proposed hike can be lowered to about 2.1%.
The board went along with his recommendation for renewal of the advantage plan covering Medicare-eligible retirees. While this year’s increase in advantage plan coverage will cost the board $400,000 annually, participation in the plan saves more than that each month and a total of $5.2 million per year.