Milton board approves preliminary 2025-26 budget and reviews insurance, debt defeasement plans

At the Milton School District board meeting, trustees approved a preliminary 2025-26 budget that the administration says will be the basis for the district’s annual meeting in August.

The board’s finance committee reported a 7.5% overall increase in insurance costs driven primarily by workers’ compensation and cyber insurance, and staff described plans to use existing debt-service balances to defease debt and avoid future interest payments.

The finance committee presentation said the workers’ compensation increase stems from a higher experience modification rate resulting from several high-cost claims that will affect premiums for the next two budget cycles. The committee also attributed higher cyber premiums to an industry-wide increase in claims, ransomware costs and complex mitigation expenses.

Staff projected preliminary general-fund figures including a base revenue increase tied to a $325 per-pupil adjustment. The presentation estimated base revenue near $39.1 million, total revenue authority slightly above $42.2 million and a general-fund preliminary budget of $50,412,245. The district reported roughly $3.0 million currently on Fund 39 that it plans to use in a defeasement package to reduce future interest costs tied to past capital referendum borrowing.

Trustees were told the district’s declining-enrollment exemption is shrinking; the presentation estimated the exemption will fall from prior levels and that next year’s total nonrecurring exemptions will change with the final end of a $2.5 million nonrecurring referendum. The presenter cautioned that the July 1 state estimate — used in revenue-limit calculations — may be based on the 2023-24 budget data because a final state budget had not been adopted, and staff said they will continue to revise the preliminary budget as new state data arrive.

During discussion, the board reviewed planned capital-project spending from the capital projects fund (available as of April 2025) including completion of Northside chillers, a high-school sound system and a roof section replacement, with a listed capital projects estimate of about $565,000 in the first year of use.

A motion to approve the 2025-26 preliminary budget carried. The finance committee presentation and board materials noted the district intends to withdraw funds from Fund 80 for a soccer field lighting project and to continue monitoring state aid, special education reimbursements and federal funding impacts as the state’s estimates are finalized.

Less-critical agenda items that were discussed but require future action included finalizing defeasement details, the exact July 1 state revenue estimate and updates to the annual meeting materials ahead of the August schedule.