Preliminary 2025–26 budget shows shortfall; board urged to track state funding and senior tax credit impacts

Webster Groves School District leaders on April 24 presented a preliminary 2025–26 budget that projects a deficit under current assumptions and warned the final gap will depend on pending state budget decisions and local property tax changes.

Superintendent John (Dr.) Simpson and district finance staff told the board the district received preliminary assessed valuation figures from the county showing roughly 14% reassessment growth, but the Hancock Amendment limits tax growth to the consumer price index (CPI) (reported at 2.9%). Staff said the district therefore used a conservative revenue estimate of a 2.25% tax base increase for planning and will update figures when final assessed valuations and tax rates are certified.

Key drivers and figures discussed - Prop S and capital: not part of the general fund projection but described elsewhere; staff reported Prop S commitments and ongoing capital projects. - Revenue assumptions: staff used the district's weighted average daily attendance and a state adequacy target of 6,760 pupils for state funding estimates. Because congressional and state budgets remain unsettled, staff provided two scenarios tied to competing state budget proposals; the deficit range presented in the meeting materials was roughly $3.8 million under one funding scenario and roughly $2.1 million under an alternative Senate proposal. - Senior property tax credit and reassessment: staff said a new senior tax credit (applications due in June, per staff discussion) and reassessment volatility complicate revenue projections; the county has not yet provided final counts for credit applicants. - Health and benefits: staff told the board preliminary health insurance projections show a roughly 20% premium increase in district costs; dental was projected to rise about 4.1%. - Staffing and enrollment: staff described using attrition and careful FTE evaluation to manage costs and avoid nonrenewals when possible. Enrollment shifts across elementary schools (for example Avery, Clark, Givens) were discussed as factors in section counts and staffing needs. - Federal funds: ESSER pandemic relief funds have been fully spent; federal food service and Medicaid reimbursements were forecast roughly flat or slightly up based on current trends.

Board members asked for clarification on how attrition and boundary changes affect classroom sections and were told the district is evaluating positions and grade‑level needs before making staffing decisions. Staff said they will return in June with a proposed budget for adoption and will again update the board in the fall when final assessed valuation and tax rates are available.

Why it matters: The board must adopt a budget by state timelines while decisions by the legislature on formula funding and by the county on property‑tax credits can materially change revenue. Staff urged continued advocacy around state funding levels and noted that even modest shortfalls are amplified by rising benefit and utility costs.

Next steps: Staff will bring the formal preliminary budget to the board for approval in June, present adjustments after final county valuations are certified, and continue to monitor legislative activity affecting open enrollment, vouchers and other education funding items.