CFO: South Bend Schools Strengthen Finances
SOUTH BEND, Ind — South Bend Community School Corp. officials say changes to the district’s financial strategy have improved its fiscal position and allowed for higher pay for teachers and staff.
Chief Financial Officer Ahnaf Tahmid discussed the district’s finances during a presentation Monday night at a South Bend school board meeting, addressing what he described as lingering perceptions of financial instability.
“There was a time when the narrative was, ‘We are financially unstable. We do not have the means to empower and give raises to our teachers. We are not transparent enough,’” Tahmid said. “I agree that that was the narrative, but that was in the past.”
Tahmid said the district’s current finances differ from that perception.
“What the present and the future tell us is that we are not only stable,” he said. “We are now officially the highest-paying district in the region and the most empowering district in the region for teachers and support staff.”
Tahmid said that while board members and regular attendees are familiar with the district’s financial changes, that understanding is not universal.
“It is our job to help people understand that the narrative has changed,” he said.
Tahmid attributed the district’s improved finances to a shift from a traditional accounting approach to a more strategic financial model.
“When revenue is declining, accountants manage decline,” he said. “Strategists ask, ‘Is there an alternative way to bounce back?’”
As an example, Tahmid cited rising health insurance costs for employees. Premiums increased 15% in 2024 and 2025 and were projected to rise another 13.5% this year. Tahmid said the district responded by reviewing its health insurance coverage for the first time in about 20 years.
The district switched medical insurance providers while remaining within the same preferred provider organization network, Tahmid said, and did so after consulting with employee unions, staff and the school board.
“Deductibles and insurance premiums both went lower,” he said, adding that benefits were not reduced.
Tahmid said the change resulted in $10 million in annual recurring savings.
“That’s not a one-time savings,” he said.
Tahmid said the district’s budget increased from about $206 million in fiscal year 2025 to approximately $213 million in fiscal year 2026, an increase of about 3% that he attributed to inflation.
“We haven’t increased our budget by 10% or 20%,” he said. “We haven’t stressed our cash reserves.”
He said the current budget was designed to prioritize operational efficiency and investments in teachers and staff, with the goal of improving student outcomes.
Tahmid also pointed to enrollment data, saying the district experienced its lowest enrollment loss in recent history.
“If we can maintain this momentum,” he said, “in the very near future, we will be gaining students.”
