OPSB Passes Resolution to Address Financial Over-Projection with Strategic Funding Plan

(New Orleans – March 20, 2025) — The Orleans Parish School Board (OPSB) passed a $25 million resolution to mitigate the over-projection in the District Level Funding Allocation (DLFA) by implementing a comprehensive funding plan proposed by Interim Superintendent Dr. Fateama Fulmore. The initiative, detailed in a recommendation presented on March 18, 2025, during OPSB's Committee of the Whole, utilized a combination of resources from the General Fund Balance and Operating Budget to ensure uninterrupted services for students across the district.

"What our schools are experiencing right now matters to me. While this may not fully resolve all of our schools' financial challenges, both now and in the future, it is a step in the right direction and something our schools absolutely deserve," said Interim Superintendent Dr. Fateama Fulmore.

The financial over-projection stemmed from an unanticipated reduction in revenues, prompting swift action to safeguard educational continuity for every child in every school, every day. To address the shortfall, the school board approved Resolution (07-25), authorizing a one-time allocation of $18 million from the General Fund Balance's system-wide reserves. This was paired with $7 million from the Operating Budget, bringing the total allocation to $25 million.

The Operating Budget contribution was bolstered by an anticipated excess of $7.4 million by June 30, 2025, driven by $1.5 million in projected Investment Income and $5.5 million in Indirect Costs Transfers. This exceeded the original budget of $7 million, providing a robust cushion for the DLFA funding needs. Meanwhile, the $18 million from the General Fund Balance was drawn from an unaudited availability of $48 million, ensuring compliance with emergency reserve policies set at 15% of projected local revenues and 12.5% of district-operated school budgets.

In a strategic move, the OPSB also approved a waiver of OPSB Policy DC, which typically requires schools to replenish such funds. Instead, the district planned to restore the reserves using $20 million in settlement funds and additional savings from other sources, easing the financial burden on individual schools.

"We are drawing on both the district's Operating Budget and General Fund Balance to ensure that the 2024-2025 school budgets remain intact and that our students receive the education they deserve," said OPSB President Katie Baudouin. "This resolution underscores the board's dedication to maintaining fiscal responsibility while prioritizing student success."

The approved plan, detailed in the FY2025 Funding Plan, offered multiple options, with the district ultimately adopting a balanced approach that prioritized stability and flexibility. The decisive actions taken on March 18, 2025, and during evening's board meeting, underscore NOLA Public Schools' dedication to maintaining a high-quality education for all students despite fiscal uncertainties.

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About NOLA Public Schools: NOLA Public Schools is the public school district for Orleans Parish. It includes the district's administration and elected school board, known as the Orleans Parish School Board. NOLA Public Schools currently oversees 67 public schools and is led by Interim Superintendent Dr. Fateama S. Fulmore.

For more information, visit www.nolapublicschools.com. For updates, follow NOLA Public Schools on Facebook @NOLAPublicSchools, Instagram @nolaps and Twitter @NOLAPSchools.