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Liberty Public Schools previews $263.4 million preliminary budget; officials warn of planned deficit spend
Summary
District staff presented a preliminary 2025-26 budget that projects $228.6 million in revenues, $263.4 million in expenditures and a planned drawdown of fund balance to about 20% by year-end, driven largely by falling capital spending as bond projects near completion.
Liberty Public Schools staff presented the board Wednesday with a preliminary 2025-26 budget that shows $228,622,685 in projected revenue and $263,408,907 in proposed expenditures, leaving a projected year-end fund balance of roughly $72 million, or about 20% of expenditures.
"This budget shows an $878,000 decrease in total revenues from the current year budget," the district's budget presenter said, describing a capital revenue decrease of $4.5 million and operating revenue increases of about $2.7 million. The preliminary budget assumes a 7% increase in assessed valuation for the district's property tax base and uses a December 2024 Consumer Price Index (CPI) of 2.9% to estimate revenue growth linked to reassessment caps.
Staff emphasized the headline driver behind the overall expenditure decrease: completion and winding down of bond-funded capital projects. Capital spending is expected to fall about $28 million while operating spending is projected to increase by roughly $7 million. Salaries and benefits account for a majority of operating increases; staff estimated about $4.1 million in additional salary costs and just over $2 million in benefit increases, including retirement costs and an allocation from Team Liberty intended for health and dental premiums.
Budget staff also noted uncertainty tied to state funding. The district assumed a modest net increase of $266,000 in state foundation aid based on changes in weighted attendance metrics and a $600,000 factor tied to a 169-day calendar provision. Officials cautioned that while the legislature advanced a budget that funds the foundation formula at a target of $7,145 per student, final payments and any potential withholdings depend on the governor's actions and state revenue availability.
The presenter walked trustees through other revenue and expenditure changes, including slower collections from Proposition C sales-tax receipts, expected decreases in interest income as bond balances decline, and planned capital funding to reduce the district's project backlog. Staff said the preliminary budget plans a controlled use of fund balance this year but warned that continued deficit spending at the projected rate would be concerning over multiple years. The board will receive updated numbers and a budget message at the June meeting and is scheduled to consider final adoption later in the summer.
