OTHS superintendent: evidence-based funding gap narrowed; tentative FY26 budget posted for 30-day review

OTHS Superintendent Dr. Shatford said the district's funding shortfall under the state evidence-based funding model has narrowed but remains substantial, and the district has posted a tentative fiscal 2026 budget for the 30-day public review required before adoption.

Dr. Shatford said, “The top number that you see there, the $37,100,000 is what our evidence based funding adequacy target is. … On the bottom, you can see the $21,100,000 are the resources we have toward adequacy.” The superintendent added, “The gap this year then is just over 9,900,000.”

The superintendent explained why the district’s share of statewide tier funding fell from prior years: “The legislature did allocate $307,000,000 to evidence based funding this year, an additional $307,000,000 statewide. $301,800,000 of that is for the tier funding. As a tier 1 school, we receive more of that funding than the other schools do.” He added that the district is expected to receive about $12,700,000 in evidence-based funding this year and that its local assessed base (EAV) increases figure into the funding calculation.

Why this matters: evidence-based funding determines how much state aid the district receives to reach a stated “adequacy” target. The superintendent said local resource calculations and statewide tiering changes (such as large districts moving tiers) affected the district’s tier allotment this year.

Board members were also briefed on the timeline for budget adoption. Dr. Shatford told the board the tentative FY26 budget “does need to be posted for 30 days prior to adoption,” and the district will hold a finance committee meeting and a public budget hearing at the opening of next month’s board meeting prior to final approval.

Discussion points and next steps: the superintendent said salaries and benefits are the largest budget drivers, noting a projected $1.5 million increase linked to planned compensation increases (the budget line representing a roughly 5.2% increase). He also flagged other budget factors discussed at the meeting: lower state reimbursement rates (“prorations”) in mandated categorical areas such as special education and transportation; new and pending grants (a DoDEA career-focused grant of $500,000 and a possible security grant that may add roughly $500,000 in revenue and expenses if awarded); and increases in insurance and health-insurance costs.

No final budget adoption occurred at the meeting. Actions scheduled in public record: the district posted the tentative FY26 budget for the statutorily required 30-day review and scheduled a finance committee meeting and a public hearing to precede next month’s vote.