Norfolk Public Schools projects lower operating expenses, prepares levy options after state aid drop

Eric Wilson, Norfolk Public Schools finance staff, told the Board of Education that the district’s proposed operating budget for fiscal 2025–26 is $60,749,155 and that staffing accounts for about 84.7% of that total.

Wilson said the district’s property-tax authority would rise to about $39.3 million for 2025–26, reflecting a 13% increase in the district’s assessed valuation. “In 2526, our property tax authority is $39,322,000,” he said, adding the increase is intended to offset a drop in state aid.

The change in state funding is the principal driver of the district’s shortfall. Wilson said the district expects non-property revenue of $22,966,530 — including $7.6 million in state aid, $6.129 million in special‑education reimbursement and $2.7 million in federal grants — and that those amounts reflect certified state figures the district must use in its budget documents.

Why it matters: Norfolk faces a familiar local trade-off — balancing taxpayer burden and program staffing — after a meaningful decline in state and federal support. The board must decide how much of its increased tax authority to use and how much to draw from cash reserves.

Board members pressed staff on specifics and the assumptions that underpin the projections. Wilson said the district budgeted special‑education reimbursement at 80% of prior‑year expenses because the state’s certified figures list that percentage; he added that “I don’t anticipate them changing it now that we’ve had that certified and guaranteed dollars, but it could change in the future.”

Wilson outlined the district’s expense-reduction work dating to November — about $876,000 in targeted cuts through attrition, reductions in contracted services, and trimmed stipends and legal services. He said the district’s operating expenses for 2025–26 represent a 1.24% decrease from the prior year’s budgeted expenses.

Board members discussed levy strategy. A board member summarized the choice this way: the district could rely more on cash reserve to reduce the levy or use more of the newly available tax authority; Wilson said the district currently has authority up to roughly $39.3 million but does not recommend using the full amount and said the district could aim for a levy roughly in the $37 million range.

Wilson cautioned that unused property-tax authority can roll over now but there is no guarantee the state will continue that policy. He also noted longer-term uncertainty in state funding levels: “There’s a budget shortfall in the state right now by about $800,000,000. So there’s a potential for budget revisions… in the short legislative session,” he told board members.

On personnel: Wilson said staffing is the dominant budget driver and that about $51 million of the budget is for payroll; including contracted professional and technical services, “90% of our budget is people.” He also sought to reassure district staff that the current draft budget does not assume additional staff cuts beyond prior actions: “there is no fear that there is gonna be additional budget cuts… that any cuts will be made in staffing. We want them to be assured of that as we move forward,” a board member said in opening remarks referencing staff concerns.

Next steps and timeline: The board has a required budget hearing and a tax hearing scheduled for September 8, 2025 at the central administration offices; the board will set the levy request after considering final valuation figures and public input. Wilson recommended continued work to trim general‑fund expenditures and careful use of cash reserves so the district is not dependent on one‑time funds if valuations or state support fall in a future year.

Ending: The board did not take a final levy vote at the meeting; members said they expected to continue discussion and to present a budget and levy recommendation at a future meeting before the statutory hearings in September.