Mohammed Seymour Board displays tentative FY26 budget after $1 million in state "tier" funding

MOHAMMED SEYMOUR, Aug. 4 — The Mohammed Seymour Board of Education voted Aug. 4 to display the fiscal year 2026 tentative budget after district finance staff reported a $1,000,000 increase in state evidence-based "tier" funding and flagged volatility in reserve accounts.

Heather, district finance staff, told the board the budget presented for display can still change before adoption and that the district "did receive $1,000,000 in tier money," which will be added to the district's base next year. "You guys are probably getting tired of budgets," Heather said as she introduced the document.

That new tier money was larger than the $500,000 the finance staff had originally assumed for the tentative budget, Heather said. She also told the board the district's IMRF account is showing a negative balance because the district allocated less levy revenue to IMRF and more to the tort fund when the levy was set. "The IMRF is negative," she said, adding that the district's overall fund balance is large enough to cover the shortfall.

Heather briefed the board on other nonoperating funds that remain uncertain, including tort and health/life-safety reserves. She said the district expects some large expenditures from tort (including a secured entry project) and that auditors had asked why tort expenses rose last year; she said the district had addressed more safety issues and had higher risk-plan costs. She emphasized that those reserves are not operating funds and "will not affect anything, like your days' cash."

Board members asked how often the district receives new budget information. Heather said the district had learned its exact tier allocation that day and also receives vendor payment updates and other routine adjustments. The tier money will affect the district's evidence-based funding (EBF) plan because the district must itemize what tier funds pay for in the EBF submission, Heather said.

A motion to display the fiscal year 2026 tentative budget as presented carried on a roll-call vote. Board members recorded in the roll call as voting yes were Jordan; Lam McComb; Brock; Severance; and McMurray. The motion to display the tentative budget does not adopt it; the display permits public review while the district finalizes figures for formal adoption.

The superintendent and finance staff will continue to adjust the tentative figures as new information arrives; Heather told the board the budget may continue to evolve before final adoption.