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Keystone Central previews 2025-26 budget; trustees warned of limited state subsidy and possible millage options
Summary
District staff reviewed the March preliminary 2025-26 budget, projecting modest state subsidy increases, ongoing bond and health-care costs, and potential millage increases that would raise $490,000 to $1.5 million depending on rate choice; staff signaled continuing work on reductions and potential use of fund balance for capital projects.
District staff presented a March preliminary budget for fiscal year 2025-26 and reviewed revenue and expense pressures that could require millage increases or use of fund balance.
The presentation, led by a district staff member identified as Joni, summarized state basic education funding increases the district expects, described a modest state subsidy gain for the district and outlined notable expenses: the final year of a Liberty Curtain bond obligation, projected health-insurance increases and higher charter/cyber tuition costs. "We have an overall very small increase in our state subsidies," the presenter said, noting the district would receive roughly $801,000 in state subsidy under current estimates and that subsidy increases do not keep pace with inflation.
Why it matters: Staff projected several millage-increase options and their estimated revenue and taxpayer impact. A 1.78-mill increase was shown as yielding about $490,000 (median homeowner impact about $25), a 3.55-mill increase about $980,000 (about $50), and a 5.34-mill increase about $1.5 million (about $75) based on the districts median assessed value cited in materials.
Staff also detailed expense pressures: a one-time $400,000 rise tied to bond obligations that peaks this year, continuing health-insurance inflation projected above current levels, and increased costs associated with special education, alternate placements and transportation. To address the gap, staff reported anticipated expense reductions totaling roughly $1.3 million through staffing, curriculum and technology reductions and other adjustments.
Board members asked for clarification about the districts virtual academy versus statewide cyber charters, and staff clarified the virtual academy serves Keystone Central students enrolled in a district-managed program.
Staff noted capital projects remain under discussion and said finance and facilities committees are evaluating whether to use fund balance for critical capital needs; staff said final budget adoption is targeted for June 12.
Ending: Staff said they will continue refining revenue and expense estimates over the spring and will bring the finalized budget to the board for adoption in June.
