McPherson — Superintendent Shiloh told the McPherson USD 418 board on Monday that declining student enrollment and growing special-education expenses have the district reviewing multiple scenarios to preserve cash reserves, including a target of $1,750,000 in savings.

Shiloh said the district’s cash-on-hand has ranged from under 10% to about 16–17% of operating costs over the last decade but that projected enrollment declines will reduce state funding tied to per-pupil counts. “What I will talk with you about is is really what I’m targeting. I think we need to be targeting… identifying 1,750,000.00 in savings,” Shiloh said.

The superintendent presented a 10-year look-back of the district’s operating cash and walked the board through three multi‑year forecasting scenarios: (1) make no adjustments (which would carry the district below its stronger years), (2) a $1.75 million savings target that would hold reserves near the 10% threshold, and (3) a $2.5 million savings target that would return reserves to the district’s strongest years.

Shiloh told the board the district’s funding relies mainly on the general fund and the local option budget and emphasized that, in a per‑pupil funding state, enrollment declines reduce revenue directly. He cited a consultant projection that the district’s projected “count day” was 2,051 students and that the district’s actual head count was 2,061 — a positive against the projection but still down year‑over‑year.

Board members and staff pressed for specifics about where the savings would come from and how facility adjustments might factor in. Shiloh said district leadership is already discussing staffing and facility scenarios and that community engagement sessions have surfaced ideas such as consolidating elementary schools to improve long‑term fiscal sustainability. “We’ll be looking for what are the ways that we can identify efficiencies and savings,” Shiloh said.

The superintendent also warned that special-education funding shifts have increased the district’s local burden and that fund balances earmarked for special education (Fund 30) could be drawn down if no actions are taken. He noted the district holds some capital reserves and that the commonly recommended operating cash range is 10%–15% of annual operating costs.

Board members asked how the district would present building-by-building maintenance and utility costs at upcoming community meetings. Shiloh said the district will provide those breakdowns and expects those figures to fluctuate year to year depending on projects and unexpected repairs.

Separately, the board discussed prior Safe and Secure Schools grant awards that the district used for door and communication upgrades. Shiloh said the Legislature did not fund the program in the most recent session and that the district will investigate whether capital outlay resources can be redirected toward security projects. “Most recently… we were awarded roughly around $70,000,” Shiloh said of earlier Safe and Secure Schools grants, adding the awards required a dollar-for-dollar match.

The board did not take final action on any of the budget scenarios Monday; Shiloh said the presentation was intended to begin a months‑long series of conversations with the board, staff and the community about possible savings, operational efficiency and facility changes.

Shiloh closed by urging a deliberate process, noting the district has time before next year’s budget to consider targeted adjustments and to refine projections for enrollment, state funding and operating costs.