(ABC 6 News) – The Byron community received new answers about the school district’s struggling financial situation when an audit of the 2024 fiscal year (FY24) was revealed at Monday’s Truth in Taxation hearing.

Balancing the books has been a top priority for the district for months.

“Back in March and April when it first came out and we did a model, they said we would be about, it said we’d be about two million dollars shortfall,” said Superintendent Dr. Mike Neubeck.

The FY24 audit showed the 2023-2024 school year’s general fund expenses exceeded incoming revenue and other financing sources by $1,753,497, decreasing total general fund balance to $123,907.

“That’s why we made the cuts of $1.6 million right away in that two month span in April and May to try to help this year out, and it did,” said Neubeck.

Board members also cited declining enrollment and $10,000 FOIA requests as contributing to financial struggles.

“Since 2023 our home-school population has doubled and our open-enrollment out of the district has more than tripled. What needs are we as a community and district not fulfilling?” said outgoing board member Matt Prigge.

While the revised 2025 budget is looking much better than the original version, there’s still a lot that needs to be done before the district is out of the hole. To help, the board approved a tax levy increase of 6.07% for 2025. The comes out to $9,215,144.26.

Though it means more money for the district, it doesn’t necessarily mean less money in the wallets of taxpayers.

“Because of the valuation of the homes, the taxpayers might even see a decrease in what they pay towards the school part of their taxes,” said Neubeck.

Homeowners can also be relieved the city isn’t raising its property taxes in 2025, as the school district plans to try for another referendum next year, after one already failed at the ballot box in November.

RELATED: Byron community responds to failed referendum vote

“Those costs, those expenditures don’t go away. Matter of fact, with inflation and when you have five contracts to settle for next year and so forth, that’s why we’re still saying that we still need a $ 1.6 million reduction next year,” said Neubeck.

The school board also officially approved Dr. Neubeck’s resignation as part of its consent agenda.

RELATED: Byron parents call superintendent’s resignation a victory

When Neubeck was asked to explain in his own words why he’s choosing to step down, he deferred to the statement the board previously released announcing his resignation.

“I think what they put out there is pretty true, so it time, it’s just time to move on and I just want to do what I can to help the district as they prepare for the future,” said Neubeck.

It’s not clear yet what the process for hiring Neubeck’s replacement will look like or if those talks have begun. Neubeck says he will not be a part of those decisions.