The Poteau Public Schools Board of Education approved the district’s FY25-26 budget after a presentation that projected lower revenue from state and federal sources alongside higher near-term expenditures for capital items.

Board members voted to adopt the estimate-of-needs budget, which staff said keeps the district under the legal spending limit for all three operational funds. The district’s finance presenter told the board that state aid makes up about 59% of general-fund revenue and that overall revenue is down from last year largely because one-time federal ESSER funds have ended and some state receipts were timed differently this year.

District staff said they projected a conservative 5% growth for local revenue sources and county ad valorem, while reducing state-dedicated revenue projections by 2% based on recent trends. On the expenditure side, the district applied a conservative 5% increase across most general-fund line items to avoid later shortfalls. Staff highlighted higher September expenditures compared with last year because the district paid for two 2026 school buses, an agricultural truck and district laptops and desktops earlier in the year.

The budget presentation noted a recent large principal payment on land and other building-fund activity. The building fund’s year-to-date expenditures rose after the district paid more than $200,000 extra in principal on a loan to reduce long-term interest costs, and the board was shown planned facility acquisitions and improvements derived from the recently adopted capital improvement plan.

Staff told the board the district’s projected total appropriation limit was $25,000,003.26 and that the FY25-26 estimate-of-needs would total about $23.6 million — leaving roughly $1.7 million of cushion under the limit. “We’re projecting conservatively on revenue and conservatively high on expenditures so we’re less likely to return later for a supplemental,” the presenter said.

The board also reviewed school-level encumbrances (purchase orders) for September. Staff noted POs for routine classroom supplies, an AED cabinet for the baseball/softball field, multiple roof repairs after a September storm, replacement of aging HVAC systems (some from the 1990s), and a charging station PO tied to the arrival of new electric buses this year. For one building-fund item, staff said the district plans to hold an additional principal payment after ad valorem receipts arrive to reduce interest costs.

The board approved the FY25-26 budget by roll call vote. No member recorded a negative vote during recorded roll calls on the budget item.

Background: Board materials showed the district has been reducing reliance on one-time federal ESSER funds and is shifting some capital purchases to be made earlier in the fiscal year so they can be used during the school year. The presentation also reiterated that instruction comprises the largest share of general-fund spending (about 76% of general-fund expenditures, with maintenance/operations and transportation included in overall instructional support).