District CFO outlines 2025–26 budget assumptions; flags potential $150,000 cut in transportation reimbursement

District finance staff presented the development assumptions for the 2025–26 budget at the May 19 board meeting, identifying revenue and expense factors district leaders say will shape the tentative budget process.

Staff told the board they expect levy revenue growth of about 2–2.2% (excluding new construction), project investment yields near 4% on new investments, and plan for conservative interest earnings. State funding tied to transportation was described as likely to be prorated at roughly 78–79% next year; staff estimated that prorating could reduce transportation revenue by about $150,000 versus full statutory amounts.

On the expense side, presenters used conservative assumptions: salary increases for collectively bargained staff were estimated at roughly 4.5% (teachers off schedule about 3%), health‑insurance costs budgeted with a 7% increase, and transportation contract costs projected to rise about 5% per current agreements. The district reported planning for capital needs including an upcoming Iroquois roof project (presented in the meeting with an approximate figure of $1.314 million) and preliminary planning and initial expenses tied to full‑day kindergarten implementation.

Staff assumptions included stable enrollment for budgeting purposes and a net staffing plan that currently shows an increase of one full‑time equivalent position in the draft budget. The district noted uncertainties — federal and state fiscal changes, legislative impacts, and prorated reimbursements — and said the tentative budget will be presented in August with final adoption expected in September.

Board members asked for follow‑up on enrollment and demographic projections; staff said a CASARO enrollment report is planned for June.