Laconia School Board approves FY26 budget, taps $900,000 in reserves

The Laconia School Board approved the school district's fiscal year 2025'26 budget on May 6, voting 5-0 to adopt a plan that uses roughly $900,000 from district reserve accounts to cover a deficit created when state adequacy and special-education funding were cut.

The board and district administrators told the meeting that the adopted budget represents about a 2.6% increase over the current year after a multi-step effort to close the gap. The district combined personnel reductions, anticipated staffing changes, pre-purchasing of technology and supplies, and the one-time use of reserves to produce a balanced plan.

District officials said the revenue shortfall stemmed from a drop in state adequacy aid and from special-education reimbursement changes. To limit the impact on classroom instruction, the administration reported it identified five positions to cut that "did not directly impact student learning," applied estimated savings from vacancies and changes in education-step placement, and completed a $50,000 technology pre-buy before a projected tariff increase. The district also allocated $20,000 in pre-buy funds to each school for instructional supplies.

Board materials reviewed at the meeting show the district anticipates using about $900,000 from reserve accounts to close the remaining gap. Administrators told the board the adopted budget would be essentially level-funded relative to the current year once the reserve transfer is included.

Board discussion also touched on the district's student-activity and food-service finances. Administrators reported the district's food-service debt at about $320,000, including roughly $50,000 attributable to student meal accounts that were in the red. The business office explained controls and audit oversight for student activity accounts and said it will continue monitoring those balances.

The board approved the budget as presented and accepted the associated financial plan to replace or pre-buy specified capital items, pursue the stated personnel changes, and use the designated reserve withdrawal.

Board members did not take additional budget amendments at the meeting; administrators said more detailed budget documents and the full 57-page budget book were available to board members for review and would guide next steps in budget execution and reporting.

Looking ahead, the administration told the board the district can more reliably predict multi-year contractual costs for labor groups with signed agreements, but noted that health-insurance fluctuations, unexpected student needs requiring services, and future state funding decisions remain uncertainties.

The board's unanimous vote finalizes the district's FY26 spending plan and authorizes staff to implement the measures discussed.