Hohman finance director previews 2025-26 proposed budget, highlights revenue assumptions and placeholders for health-claims risk

Julie Holman, executive director of finance and operations for the School District of Hohman, presented the district's proposed 2025-26 budget summary and laid out several assumptions and risk areas that will be finalized after state and enrollment certifications.

Why it matters: the proposed budget frames next year's staffing, programs and tax impacts; the district will publish an original budget in October after the third-Friday enrollment count and state aid certification.

Holman said the proposal incorporates the state legislature's $325 increase in the revenue limit per pupil and assumes the $742 per-pupil categorical aid remains unchanged. "The ending fund balance for 24-25 becomes the new starting fund balance for 25-26 as of July 1 estimated at just over $15,000,000," Holman said.

Holman explained that open-enrollment transfer rates will rise significantly under the state budget, citing a 12.72% increase in the regular-education open-enrollment transfer and a 7.73% rise for special-education transfers; she said the district's net open-enrollment loss will make the increased transfer rate a more substantial budget pressure. She estimated the district's property tax levy at $12,084,000 but cautioned that final levy numbers depend on the Sept. 3 enrollment count, equalized valuation from the Department of Revenue and the Oct. 15 state aid certification.

On expenditures Holman described how a large health-claims overage in 2024-25 required redistributing costs across functions and that the proposed budget includes a $750,000 placeholder in one line for potential health-claims overage going forward as the district monitors claims versus premiums in its first year of self-insurance.

Holman outlined programmatic reductions and additions: about 13.0 educator FTE reductions (across licensed roles, not limited to classroom teachers), elimination of six limited-term building substitute positions, restored IT funding previously cut and several targeted additions including a half-time speech-and-language professional and adjustments to 4K staffing to respond to higher 4K enrollment.

She also described the district's debt service and capital-projects positions, noting a debt-service fund balance that is being held to maintain a mill rate of $6.94 and a capital fund with remaining commitments for construction and a set-aside of about $650,000 for IRS arbitrage rebate related to slower-than-expected spend-down of 2023 bond proceeds.

Board members asked about primary budget risks; Holman said health insurance and special education remain the largest unknowns. The proposed budget will appear on the Sept. 22 consent agenda for formal action at that meeting.