Tim Brown, who has served as Chief Financial Officer (CFO) for Hamilton Southeastern (HSE) Schools for just under a year, is focused on navigating funding challenges resulting from the 2025 Indiana General Assembly session. Following a Wednesday morning meeting of the school board’s Finance Committee, Brown spoke with LarryInFishers about the district’s financial outlook and budget planning.

Brown expressed confidence in the administration’s ability to manage short-term budget shortfalls, noting that cost-cutting efforts are being designed to be “less painful for folks.” However, he added that the long-term financial impact of recent legislative decisions remains “to be determined.”

The school board is slated to receive a budget update in June, although Brown cautioned that it may still be too early to fully understand the implications of the legislative changes. One positive outcome, he noted, was a 2% increase in per-student funding for the Education Fund—a welcome development given the state’s tight revenue forecast and cuts to other sectors, including public health.

Funding for the Operations Fund, which comes from local property taxes, is less certain. Brown expects this area to present a greater challenge in the coming years. However, continued growth in assessed property values could help ease the strain, provided those increases persist.

With local demographic trends showing a decline in student enrollment, HSE has seen growing interest from families outside district boundaries. While some students from outside HSE may be admitted if they meet district standards, Brown noted that these decisions can be fluid, as families sometimes change plans at the last minute. This uncertainty makes it difficult to project outside-the-district boundary enrollment figures for the coming school year. HSE is graduating approximately 1,700 seniors this year, while the incoming kindergarten class has dropped to around 1,100.

Brown also addressed some confusion around the reported per-student funding increase. While some argue the increase is higher than 2%, the higher figure does not properly take into account state funding now allocated for “curricular materials”—previously known as textbook fees paid by parents. The state has rolled this cost into the general per-student funding structure, complicating direct comparisons to past budgets.

Highlights from the Finance Committee Meeting:

• Pharmacy Benefit Management Contracts:
  A staff and teacher committee recommended awarding pharmacy benefit manager contracts to Capital Rx and Archimedes. The new agreement, effective July 1, is expected to save the district $2.5 million annually, benefiting both employees and the school’s health trust fund. The contract runs for 3.5 years.

• Virtual Healthcare Access with First Stop:
  With most HSE employees moving to a high-deductible health plan, the district is partnering with First Stop, a 24/7 virtual healthcare service. The service will be available at no cost to employees and members of their households, covering many, but not all, health needs.

• Behavioral Health Services Through Community Health:
  HSE has renewed a one-year contract with Community Health to provide behavioral health services, placing therapists in all 22 school buildings. The cost remains unchanged from last year at $400,000.

• Textbook Adoption Costs:
  The committee also reviewed expenses related to new textbook adoptions. The selected books will be available for public viewing during the May 14 school board meeting.