Lakeland Joint School District board adopts FY‑26 budget after $2 million levy cut; key spending choices deferred

The Lakeland Joint School District 2526 board on Wednesday adopted the district’s fiscal year 2026 budget after a public budget hearing and discussion of staffing, fund transfers and program priorities.

Chief Finance Officer Jessica Grant told the board the general fund — the district’s primary operating budget — reflects lower property tax receipts because roughly $2.0 million of what the district levied is being reported and received as state property‑tax‑relief funds rather than local revenue. Grant said the district expects about $2.0 million in tax‑relief funds this year compared with about $2.3 million last year, though the final amount will not be available from the state until August or early September.

The move to adopt the FY‑26 budget came after trustees questioned specific program requests and staffing assumptions and after Grant outlined potential one‑time sources to cover items that were omitted from the base budget.

Why it matters: The adopted budget responds to an estimated drop of roughly 200 students — a loss Grant said would reduce the district’s support units by about 6.33 — and to state changes in how property‑tax‑relief is reported. That combination forced the district to cut positions and limit one‑time purchases while preserving core services.

Most important facts - Revenue adjustments: Grant said the district moved some previously local revenue into state revenue lines to reflect property‑tax‑relief reporting; the final state figures will be available in August or September and the district plans to file a standard L2 extension with the state. The FY‑26 budget assumes roughly $2.0 million in property‑tax‑relief funds (prior year roughly $2.3 million). - Personnel and cuts: The district cut about seven teaching positions through normal attrition (resignation/retirement) and incorporated other staffing changes. Grant estimated the budget reflects more than 130 position changes in total during the planning process and said she expects at least one budget amendment in the fall once enrollment and actual hires are known. - Proposed but not funded items: The district did not include several items in the adopted base budget because of revenue constraints. Grant listed proposals she planned to present for board consideration at the June 18 meeting (and said she would propose funding sources if the board wished): • Social‑studies curriculum materials: estimated cost $335,000. Grant described options to cover this as one‑time uses of fund balance, reallocating approximately $46,000 in federal forest funds, using a remaining $146,000 in an approved projects fund, or transferring interest revenue from the new school modernization fund. • Nursing supplies (AED pads and other items): estimated increase $5,000. • Library materials: raise supply allocations from $500 to $2,500 per building — roughly $20,000 total. • Elementary and middle‑school counselor days: requests to reinstate counselors’ pre‑/post‑year days (elementary five days, middle school eight days) were described but not funded in the adopted base. • Salary step increases for classified, administrative and exempt staff: Grant estimated an ongoing cost of about $235,289 (classified $189,101; administration $23,740; classified directors/exempt $22,004.48). She said she did not recommend funding ongoing salary steps from one‑time fund balance and preferred waiting until September when final salary‑apportionment numbers are set. - Interfund transfers and special funds: The budget includes a $315,000 interfund transfer of interest earnings from the school modernization fund (Fund 436) into the general fund to help offset facility costs; Grant said state guidance allows interest earnings from the modernization fund to be transferred for facilities expenses. - School modernization fund and capital work: Grant presented a multi‑year list of projects the district would like to fund with the new school modernization appropriation (House Bill 521 funding). She said the packet shows a detailed plan for buildings, roofs, and code‑driven upgrades and that staff expect to expend most or all of the modernization funds by summer 2027 if projects are bid and scheduled as shown. She noted the district may need to slightly exceed the budgeted authorization because some projects span multiple summers and timing of materials and bids is uncertain. - Timberlake field house and local facility funds: The local facility fund carries a large externally raised balance tied to the Timberlake High School field house; Grant said the district hopes to put the project to bid this summer and that those funds are tracked with separate project codes. - Child nutrition and contracted services: Grant reminded the board that the district’s outsourced child‑nutrition contract (Chartwell/Chartwells referenced in the packet) changed program dynamics and that the district may have to supplement the program from the general fund when the child‑nutrition fund balance runs down; she noted contract renewal and procurement are reviewed when the contract term ends.

Discussion, directions and decisions - Discussion points: Board members asked for detail on the amounts and timing of state property‑tax‑relief funds, consequences of enrollment declines, and whether particular items (for example, clerk‑of‑the‑board cell‑phone stipends and the social‑studies purchase) should be prioritized. Trustees also questioned roof work at Lakeland Middle School and asked staff to provide the district roof‑replacement matrix and the schedule that had been prepared previously. - Staff directions: Grant said she will bring back specific funding recommendations for the social‑studies purchase and other one‑time items at the next board meeting so the board can decide whether to authorize transfers or use existing reserves. She also said she will reissue final FY‑25 actuals after the fiscal year closes to compare estimates with actual results. - Formal action: After the hearing the board voted to adopt the FY‑26 budget as presented.

Formal actions extracted from the hearing - Budget adoption: motion to approve the FY‑26 budget as presented — outcome: approved (motion carries; no roll‑call tally captured in transcript excerpt). Referenced by: board minutes at the conclusion of the public hearing. - Executive sessions called under Idaho Code 74‑206(1)(b): motions and roll‑call approvals recorded earlier in the meeting to go into executive session; no budget action was taken in executive session.

Clarifying details extracted from the packet and board discussion - Property tax relief: FY‑25 roughly $2,300,000 received; FY‑26 estimated $2,000,000 (final state figure to be released in August/September). Source: Jessica Grant presentation. - Interfund transfer: $315,000 from Fund 436 (school modernization interest) proposed to general fund for facility expense offset. - Proposed social studies curriculum: $335,000 (not in adopted base; will be presented on June 18 for board decision and proposed funding sources). - Salary step estimate: $235,289 total (classified $189,101; administration $23,740; classified directors/exempt $22,004.48) — ongoing cost; Grant recommended against using fund balance for ongoing salaries. - Enrollment: April enrollment cited at 4,629; projected FY‑26 enrollment shown in packet at roughly 4,487; board discussion estimated a decline of about 200 students and a support‑unit reduction of ~6.33.

Proper names cited in coverage - Lakeland Joint School District 2526 (agency) - Timberlake High School Field House (facility/project) - Architects West (organization) - Tremco (vendor cited in roofing assessment) - Skyward (student/finance system software)

Community relevance and next steps The board approved the FY‑26 budget but directed staff to return with clearer funding options for one‑time spending requests, including the proposed social‑studies curriculum purchase. Final state property‑tax‑relief numbers due in August or September could require adjustments; Grant warned that staff expect to present a recommended budget amendment in the fall once final enrollment and apportionment numbers are confirmed.

Ending: The board adopted the FY‑26 budget at the hearing and scheduled follow‑up reports and potential amendments once the state releases final tax‑relief and apportionment figures for the year.