Box Elder board adopts tentative FY26 budget and tentative tax rates, advances plan for possible $110 million school construction loan after public outcry

The Box Elder School Board on June 11 approved a revised FY25 budget and a tentative FY26 budget that includes a proposed $110 million lease-revenue financing plan to fund school construction and expansions. The board also voted to set tentative tax rates to support the budget; both the budget and the tax rates remain tentative and will be finalized after Truth in Taxation hearings required by state law.

Why it matters: The tentative budget sets the district’s planning framework for FY26 and signals a potential major capital borrowing program. Administrators told the board the proposed $110 million lease‑revenue loan would carry an estimated annual payment of about $8.8 million at a 5% interest assumption; staff said the annual cost could translate initially to roughly $25 per household per month, declining over the life of the loan as other debt obligations roll off the district’s schedule.

Budget and bond details: Finance staff presented historical context (WPU/WPU adjustments, state one-time and ongoing funds) and several specific budget items. The FY26 proposal included a roughly 6.2% compensation increase for employees (2.19% contractual step/lanes, 2% negotiated and an additional 2% proposed for market competitiveness), a $4.6 million proposed design budget for high-school planning, and a line item for an $110 million lease-revenue financing (described by staff as supporting expansions at two high schools and construction of a new elementary school). District staff estimated the annual payment on a $110 million facility financing at about $8.8 million and showed projections in which the average household impact would fall under $10 per month in later years as other district debt and tax-increment financing commitments expire.

Public comment and board reaction: The budget hearing gathered more than a dozen public speakers. Several residents—particularly older or fixed‑income taxpayers—urged the board to respect a November referendum in which voters rejected a prior property-tax increase, warning further tax increases could price people out of homes. Other speakers urged quicker construction of safe, modern facilities, especially at overcrowded elementary sites. The hearing included multiple requests that the board work with city and county leaders on coordinated planning. Following public comment, a board member read a prepared statement dissenting from the proposed budget and said they would cast a “no” vote, arguing the proposal disregarded the November vote and risked further burdening taxpayers; the board nevertheless approved the tentative budget and tentatively approved certified tax rates.

Next steps and timing: Administrators emphasized the current votes are tentative. The board must hold a Truth in Taxation hearing and adopt final tax rates in August; the FY26 budget will be finalized at that time. Staff committed to monitoring one-time funds and to return with updates on the capital plan, the cost impacts on households, and potential alternatives; they also invited coordinated meetings with municipal leaders already scheduled for June 25 to discuss growth, development and financing options.