Board approves 2025-26 budget, moves $17 million to building fund and authorizes election procedures

BENTONVILLE, Ark. — The Bentonville School District Board of Education approved the district's proposed fiscal year 2025-26 budget Aug. 19, authorized a $17 million transfer from the operating fund to the building fund and approved a set of administrative actions including a special-election resolution to meet constitutional millage requirements.

Doctor Janet Swanhauser (presented as Dr. Schwanhauser in the meeting) walked the board through the proposed 2025-26 operating budget and key variables that determine district revenue: student membership (ADM), state foundation funding and assessed property value. Swanhauser told the board that the state foundation funding rate for the year is $8,162 per student and that the district's assessed value for 2024 stood at about $3.91 billion, noting prior millage rollbacks when assessed value rose sharply.

Key budget votes taken and outcomes - Transfer $17,000,000 from the operating fund to the building fund (motion by Willie; second by Tatum). Becky called the vote; all members present voted yes. Motion approved. - Approval of the 2025-26 budget (motion by Jeremy; second by Rachel). Roll call: unanimous yes. Motion approved. - Approval of a proposed budget and a resolution to call a special fall election on the district millage and to request a county-appointed qualified elector to cast the single vote (motion by Bill; second by Jeremy). Roll call: unanimous yes. Motion approved. - Authorization of district signers (Jennifer Faddis, Dr. Jones and Janet Swanhauser) (motion by Becky; second by Bill). Unanimous yes. Motion approved. - Approval to pay vendors and make electronic transfers (motion by Willie; second by Tatum). Unanimous yes; staff said electronic payments provide rebates and reduce fraud risk. - Personnel recommendations following executive session (motion by Willie; second by Bill). Unanimous yes. Motion approved.

Financial details presented: the operating fund beginning balance was shown at about $42.3 million, with estimated operating revenues of roughly $265.2 million and expenses of about $255.9 million for a projected surplus near $9 million; the district plans to transfer portions of those savings into the building fund to cover capital projects without raising millage. The district reported it will move $17 million immediately and expects to move about $9.3 million at fiscal year close to fund capital needs. Swanhauser said roughly 72.7% of operating expenses are salaries and benefits.

The board also discussed the constitutional requirement under Article 14, Section 3 that the district present an annual millage rate to voters. Because Act 503 of 2025 changed fall election procedures statewide, staff recommended calling a special election to meet the constitutional requirement and asking the county election commission to appoint a qualified elector to cast the single vote for the millage in a non-contested matter. The board approved that approach and approved the publication of the required proposed budget notices.

Nut graf: The package of fiscal approvals preserves the district's long-term capital plan funding approach — saving operating surpluses to pay for building projects — while adding procedural steps to comply with revised state election law. Board members asked several technical questions about cost escalation, electrical and utility cost assumptions and the budget'to'assessed-value relationship; staff said they use multi-year projections and that the board would review the district's 10-year capital plan in October.

Ending: With the budget approved and transfers authorized, staff said they will continue work on the capital plan and return in October with details and any adjustments, and coordinated with the county election commission on the special-election mechanics.