Fulton board adopts tentative $94.2 million 2025-26 budget, proposes 1.9% tax levy increase

The Fulton City School District Board of Education on Tuesday approved a tentative $94,197,840 budget for the 2025–26 school year and proposed a 1.9% increase to the district tax levy.

The vote followed a detailed presentation from district finance staff and months of public budget forums. Kate Hooper, the district business official, told the board the tentative budget represents a 6.45% increase in total spending from the current year and includes using $3,850,000 from district reserves to help close the gap between revenue and expenditures.

“We're proposing a 1.9% increase to the tax levy,” Kate Hooper said during the presentation, adding that state aid is expected to remain the district’s largest revenue source at roughly 68.9% and that the district has budgeted for significant increases in health-care and energy costs.

Why it matters: Hooper and board members said steep increases in employee health insurance and higher utility and contract costs drove much of the pressure on next year’s budget. The district also said it reduced its initial rollover budget — about $99 million — by roughly $5.1 million through cuts to supplies, services and by planning position reductions primarily through retirements and resignations.

Key specifics included in the presentation: - Tentative budget total: $94,197,840 (6.45% increase over current year). - Proposed tax levy increase: 1.9% (estimated impact: about $34.58 per year on a $100,000-assessed house, using prior-year rates). - Planned use of reserves: $3,850,000 (employees’ retirement reserves and a small amount from reserves for accrued liabilities). - Budget components: 75.7% program, 14.7% capital, 9.6% administrative.

Hooper emphasized that employee benefits — driven by health insurance — are the primary area of concern. She showed a 10-year trend in district health costs that the district said have risen roughly 55% over the last three years and warned that, without mitigation, benefits could drive end-of-year overexpenditures.

The board also reviewed reductions made while preparing the budget. The district listed 59 position reductions as part of its adjustments; administrators said many of those were achieved through attrition (retirements and resignations) and by reallocating some noninstructional positions rather than outright layoffs. The superintendent’s office said, for example, that reduced one-to-one aides in some cases as student needs changed and that some of the noninstructional reductions come from decreased need rather than program elimination.

Superintendent Pallvino and other board members repeatedly urged residents to vote. Board members and staff warned that if voters reject the budget the district could be forced into a contingency budget under state rules, which would prohibit any tax levy increase. The district provided examples of what a contingency budget would cut: equipment purchases, some extracurricular advisors and field trip funding, paid substitutes for clerical work, and use of district buildings by outside groups. The administration said those cuts would disproportionately affect extracurricular activities and nonacademic functions rather than core classroom instruction, but added that contingency budgets offer “little room for anything extra.”

The board held a roll-call vote to approve the tentative budget. The motion passed by board vote and the record shows the board approved the tentative budget by voice vote and roll call during the meeting.

Public comment and debate: Community speaker Frank Castillo used the public forum to press for outside audits and criticized some district spending choices; he said he had asked the state attorney general’s office and the controller’s office to audit district finances. “I have requested an audit by the attorney general's office,” Castillo said. Board members responded that some of the questions he raised had been addressed previously and that staff would follow up.

Next steps and timeline: The board will present the tentative budget to voters on the scheduled budget vote (the meeting materials cited a May 20 budget vote). If voters approve the tentative budget, the board will ratify it the following day. If the budget is defeated, the district can either present a revised budget for a revote or adopt a contingency budget in accordance with state requirements.

Votes at a glance (actions recorded during the meeting): - Approve agenda — passes (voice vote). - Approve minutes (action 1.06, April 8 meeting) — passes 6-0-0. - Accept March financials (action 4.01) — passes 5-0-0. - Accept donation from Fulton Lions Club (action 4.02) — passes 5-0-0. - Accept donation from Fulton Savings Bank (action 4.03) — passes 5-0-0. - Proclamation: Teacher Appreciation Week, May 5–9, 2025 (action 5.01, resolution) — passes 5-0-0. - Approve tentative 2025–26 budget (roll call) — passed (recorded as approved during roll call in session). - Adopt 2025–26 property tax report card (action 5.03) — passes 5-0-0. - Approve sponsorship of continuing education for adult education programs (action 5.04) — passes 5-0-0. - Approve Committee on Special Education recommendations (action 5.05) — passes 5-0-0. - Personnel approvals (batch 07/2001–07/2009, including winter sports appointment correction) — passes 5-0-0. - Move into executive session — passes 5-0-0. - Adjourn (action 9.01) — passes 5-0-0.

Ending: Board officials reiterated contact points and documents for residents who want more detail: the budget slide deck and presentation materials will be posted on the district budget web pages and voters can submit questions by email to the district clerk.