School Board discusses FY26 budget changes amid declining student enrollment

The Lincoln County Board Meeting held on May 27, 2025, focused primarily on the proposed budget for fiscal year 2026. The superintendent presented a comprehensive budget plan that reflects the district's financial needs while adhering to the constraints of approved revenue.

A significant point of discussion was the decline in general fund revenue, which is projected to decrease by approximately $1.2 million due to a loss of around 40 students compared to the previous year. This decline in student enrollment directly impacts funding, as each student represents a portion of state aid. The board emphasized the importance of maintaining a healthy fund balance of about $3.8 million, which is crucial for future expenses such as building maintenance and potential new school construction.

The budget also includes an increase in levy estimates, projecting an additional $500,000 in revenue due to higher property valuations in the county. However, state aid is expected to decrease by $750,000, again linked to the declining student population. The special revenue fund is budgeted at $7 million, with expectations for this amount to grow as new grants are secured throughout the year.

In terms of specific expenditures, the budget for child nutrition is set to rise by $300,000, attributed to increased food costs and higher revenue from meal counts. The board discussed the current state of kitchen equipment, confirming that no major replacements are anticipated at this time.

Transportation funding remains stable, with no significant increases in the budget despite rising fuel costs. However, the district is facing challenges in bus procurement, with delays in receiving ordered buses from various vendors, which is a statewide issue.

The meeting concluded with a review of staffing levels, noting a slight reduction in full-time equivalent positions from 413 to 404 in the general fund. The board acknowledged the rising costs associated with special education, which have increased by about $1 million year-over-year, emphasizing the need for careful financial management to address these challenges.

Overall, the discussions highlighted the district's ongoing efforts to balance budgetary constraints with the need to provide quality education and maintain essential services. The board plans to continue monitoring financial trends and student enrollment closely as they move forward with the budget approval process.