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Homer Central officials present $50.7 million 2025–26 budget, outline four propositions for May vote
Summary
District officials presented a proposed $50,679,157 2025–26 budget that would raise the tax levy about 3.9%, citing a large health insurance increase. Voters will be asked to approve four propositions at the district budget vote, including a diesel bus lease, library funding, and a new capital reserve.
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Homer Central School District officials presented the district’s proposed $50,679,157 2025–26 budget and said it would require about a 3.9% increase to the district’s tax levy.
The presentation laid out how most of the spending increase reflects a 13% rise in health insurance costs — “that’s roughly just under $900,000,” the presenter said — and noted the district will use a combination of a levy increase and reserves to offset only a nearly flat increase in state school aid.
Why it matters: If voters approve the spending limit and the district levies to raise that amount, local property tax bills will be affected differently across municipalities because assessed values and county/state equalization rates vary. District staff gave examples showing the average district impact and cautioned that individual bills can differ: “for a $100,000 home, would be $75 … for a $500,000 home, $375,” the presenter said.
Most important facts - Proposed spending: $50,679,157 for 2025–26; presenter identified this as the spending limit that will appear on the budget ballot. - Proposed levy increase: about 3.9% over the prior year, described by staff as largely driven by higher health insurance costs. - Health insurance: presented as a 13% increase, characterized as “roughly just under $900,000.” - State tax cap and CPI: staff explained the Consumer Price Index used at calculation time was 2.95% and the state’s statutory multiplier is capped at 2% (described in the presentation as the “2% tax cap” and the CPI multiplier).
Ballot propositions described to voters - Proposition 1: Authorize the district to spend up to $50,679,157 and levy taxes to raise that amount (the main budget proposition). - Proposition 2: Diesel bus leasing — staff said the district is proposing diesel bus leases and is not proposing zero-emission buses; the proposal is to lease six buses at a cost not to exceed $1,100,000 (the district historically leases buses on a five-year cycle). - Proposition 3: Phillips Free Library funding — the library asked for an increase in local support, from $214,330 to $220,431; the district acts as a flow-through to collect and pass the funds. - Proposition 4: Creation of a capital reserve fund not to exceed $5,000,000; staff said the reserve would be funded by excess general fund monies and board-approved transfers from other reserve funds and would be used for renovations and additions to district facilities.
Voting logistics and eligibility Staff told the public that the budget vote will be held at HTEC during the district’s budget vote; doors will open and close according to the district’s published hours for the vote and only residents present before polls close will be able to vote. Staff also reviewed voter eligibility criteria presented to the audience: voters must be U.S. citizens, at least 18 years old, and have lived in the district for at least 30 days before the vote; voters will be asked to show ID at the polls.
What was not decided or is pending The presentation was informational and part of the statutory budget hearing process; the propositions will be decided by voters on the budget vote. The district did not adopt the budget at the meeting — staff asked the public to attend the vote.
Where to get more information Staff said the full presentation and additional materials will be posted on the district website and a video has been produced and distributed to the school and wider community. The presenter encouraged residents to review the materials and exercise their right to vote.

