Mentor CFO presents FY26 appropriations, warns of enrollment decline and $2M projected deficit

At the Sept. 9 meeting the board heard the Chief Financial Officer—xplain the FY26 appropriations request and the district's near-term fiscal outlook before approving the appropriations authority for the year.

The CFO (title provided in the meeting; name not in the public transcript) said appropriations represent the board's legal authority to spend during the fiscal year. He described the district's revenue mix and projections: 72.2% of projected revenue comes from the local tax base, about 15.6% from state aid, and roughly 6.6% from homestead and rollback reimbursements on levies approved before 2012. The CFO projected total revenue near $115.7 million and said the district is proposing general-fund appropriations of approximately $117.7 million for FY26.

The CFO also reviewed staffing and enrollment trends: the district reported 6,454 students as of the Sept. 2 update and said enrollment has declined since at least FY22 and over a longer trend since the mid-2000s. Staffing reductions were described in projected counts (from prior staffing numbers to a projected approximately 958 positions after planned changes) and included reductions of two administrators, about 12 certified teachers and several classified/exempt positions.

On expenses, the CFO said roughly 84.5% of the budget is salary and benefits. The presentation noted negotiated salary increases (3% for certified/classified, 1.5% for administrators), an assumed 6.5% increase in healthcare costs and the impact of negotiated benefit changes (including spousal coordination of benefits and prescription-drug changes) that are expected to yield savings beginning Jan. 1. He said the district expects to deficit-spend this fiscal year by about $2 million, reducing cash balances to an estimated $45.5 million by year-end; encumbrances were estimated near $3.1 million and the district's 5% reserve policy equates to roughly $5.7 million.

The CFO framed these data in the context of new timing requirements from House Bill 96: the state now requires earlier forecast submissions (August and February schedules) limiting some of the accuracy available previously in November and May. He said the district will continue to produce a five-year forecast internally but will submit the four-year version required by the state; he warned that August forecasts will have less complete tax and staffing data and that the board should rely on monthly reports and a fuller October update to refine the forecast.

Following the discussion the board approved the appropriations motion. The roll calls in the meeting record show unanimous approvals for consent and appropriations-related items during the agenda.