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Colonial board sets FY26 tax rate increase at 7% after debate over reassessment appeals and federal grant risk
Summary
After a lengthy discussion of county reassessment data, appealed parcels and a potential $1.3 million federal grant shortfall, the Colonial School Board voted 6–1 on July 8 to set a 7% operating increase for fiscal 2026.
The Colonial School District Board of Education voted 6–1 on July 8 to set a 7% increase to the district’s operating tax request for fiscal year 2026, citing uncertain collections tied to New Castle County’s reassessment process and potential federal grant shortfalls.
The motion to set a 7% increase was made by board member Christine Smith and seconded by Philip Breeding; the roll call concluded with one “no” vote by Robert Law and the motion carried 6–1.
Chief Operating and Financial Officer Emily Falcon briefed the board on data that continued to change as New Castle County finished reassessment files. Falcon said county corrections reduced the district’s assessed base from earlier estimates and that condominiums and exemption adjustments had been fixed. She also described the appeals data and the assumptions she used to estimate revenue at risk: “Of the data that I got from the county ... 826 parcels requested an appeal. Over 500 of those parcels did not have a requested value,” Falcon said, and she explained she applied a 34% average reduction to unknown parcels to model risk.
Falcon presented a range of potential revenue impacts. Using her assumptions, she estimated the district’s potential annual revenue loss from reassessment appeals could range from roughly $2.7 million (on her mid‑estimate) to as much as $8.2 million in an extreme scenario. Falcon also warned that the federal government’s decision to withhold a portion of Title II, III and IV grants put about $1.3 million of expected federal funding at risk for FY26 and that delays or reversions at the federal level could further complicate planning.
The board discussed options for the operating rate, laid out in Falcon’s briefing as revenue neutral or adds of 3%, 7% or 10% above the revenue neutral baseline. Board members debating the motion cited uncertainty in appeals, the need to protect classroom and staff positions, and the limit in the code that allows a board to increase the operating portion up to 10% above prior year collections after a reassessment reset.
Board president Ted (facilitating) asked for members’ direction on balancing taxpayer impacts against fiscal stability. Several members said they wanted to minimize harm to programs and staff if appeals or federal funding shortfalls materialized; others stressed public messaging and the limitations of the county’s data. Falcon noted a schedule constraint: “If I don't get them a rate by Thursday at 08:00, it'll go the bill will go out with our old rate,” underscoring the administrative deadline for Newcastle County billing.
Motion details and outcome: motion by Christine Smith, seconded by Philip Breeding; recorded roll call votes (Handy: yes; Breeding: yes; Smith: yes; Law: no; Dorsey: yes; Crossen: yes; + one additional yes) produced a 6–1 majority and the board approved the 7% operating increase. The board also confirmed the related debt, match and tuition tax components Falcon included in the total rate calculation.
Ending: The board directed staff to continue monitoring appeals, collections and federal grant discussions and to present detailed budget materials at the next meeting.
