Kim Sanfeliz

The agenda includes several informational items including a Chair report, an academic report, a report from the Finance Committee, and a report from the Governance and Nominating Committee. Additionally, the Board will review and vote on the contracting for the Woodson capital project.

The finance committee meeting of the board of directors of KIPP New Orleans Schools covered several key areas. The organization concluded FY25 with a net income, supported by accelerated Medicaid revenues, resulting in an adjusted fund balance above the working capital threshold. K-12 enrollment was reported at 87% of total program capacity, with kindergarten enrollment remaining weak. The projected FY26 deficit was presented, with discussion on revenue shortfalls from lower enrollment and conservative special education assumptions, as well as recently added staff positions. Discrepancies in special education funding between internal records, state databases, and district payments were highlighted. Management's plan to address the shortfall through staff reductions and revenue analysis was discussed, and the upcoming board retreat will focus on sustainability, including potential school consolidation and strategic facility use.

The meeting covered the organization's FY25 financial outlook, which improved from a deficit to a positive net income due to early Medicaid reimbursements. Challenges with NOLA Public Schools regarding special education student counts and payment reconciliation were discussed, including potential additional revenue from high-needs students. The FY26 budget maintains the existing enrollment forecast, with sustainability scenarios under consideration, such as co-location and building consolidations. Cost-reduction measures, including in-sourcing security and custodial services, were also reviewed. NOLA PS's updated charter accountability framework and the annual Louisiana Compliance Questionnaire were previewed, with a discussion on rotating audit partners.

The committee discussed the FY25 financial outlook, noting an improvement in the projected deficit due to local relief funding. They reviewed financial statements and the organization's finance scorecard. The FY26 budget outlook included discussions on enrollment projections, a substantial revenue decline due to the expiration of federal relief funding and lower property tax revenues. Cost reduction strategies, including the reduction of summer school programming, operational shifts like transitioning to a supper model, and the elimination of duplicative expenses were explored. The difficult decision to eliminate 87 staff positions was also discussed. The organization plans to maintain a strong fund balance, and the committee acknowledged the financial pressures being experienced across the local charter sector.

The meeting included a CEO report highlighting student, teacher, and staff achievements, including recognition of long-serving team members, high school graduations, college matriculation, and scholarship dollars earned by the graduating class of 2025. The Finance Committee presented the FY25 fund balance and the proposed FY26 budget, noting a stronger financial outcome for FY25 than initially predicted, despite challenges from declining revenues. The board approved resolutions authorizing bank signatories and facility improvements at four school campuses. The Governance and Nominating Committee discussed the organization's financial needs and the board's role in fundraising.