Litchfield Elementary board adopts proposed FY2026 budget after public hearing

The Litchfield Elementary School District Governing Board held a public hearing June 24, 2025, on the district’s proposed fiscal year 2026 budget and unanimously approved the expenditure budget as presented.

CFO Vaughn summarized the district’s revenue and spending plans, saying the proposed budget assumes a slight increase in student enrollment and higher per-pupil funding from the state that together drive a $1,300,000 increase in the district’s revenue control limit. Vaughn also told the board the district has "a little bit over a million dollars of debt cash" available that can help with cash-flow if state payments fluctuate.

The budget presentation described the district’s primary funds: maintenance and operations (M&O), unrestricted capital outlay and the classroom site fund. Vaughn said the M&O budget is driven by the state funding formula, which uses weighted student count and other factors, and highlighted that the proposed M&O budget shows classroom spending at 71.4% of M&O dollars. The unrestricted capital outlay fund, which supports furniture, equipment and facility improvements, includes one-time carryover from late fiscal 2025 resources that the district plans to apply in 2026, including work on modular classrooms at Palm Valley.

Vaughn told the board the district expects to levy $2,000,000 in adjacent-ways resources next year to support the Troy Gilbert Elementary project, including the improvement of a half street leading to the site. He also said some state funding streams referenced in the presentation could change before final state action and that any changes would be reflected in the district’s December budget revision.

Board member Miss Moran pressed for clarity about the projected decrease in budget carryforward, asking whether dipping into reserves by about $500,000 was a concern. Vaughn said the district’s reserves remain healthy and within policy limits and that the estimate will be refined in the December revision after the annual financial report. Regarding interest earned on M&O accounts, Vaughn explained that districts earn interest that county treasuries hold as "dead cash" and that the state budget formulas generally prevent districts from moving that interest into the M&O revenue control limit for spending. Vaughn said the district typically tries to move cash into capital funds where interest earnings are accessible.

On classroom site funds, Vaughn said the district’s JLBC allocation is expected to be about $9,700,000 for FY2026 but that timing and limited transparency in components of the formula (sales-tax collections and state land-trust transactions) mean the district budgets a year behind actual receipts. Board members discussed using the classroom site fund to make ongoing pay and stipend commitments rather than one-time allocations.

After questions, Miss Moran moved to approve the proposed fiscal year 2025–26 expenditure budget as presented; Mr. Mikes seconded the motion. The motion carried by unanimous vote of the board members present.

The board previously voted to convene the public hearing earlier in the meeting and later adjourned the hearing and the regular meeting by unanimous votes. No public comments were offered during the hearing.

The board indicated it will reflect any state budget changes in its December budget revision and will hold a taxation hearing in July specifically related to the adjacent-ways levy for Troy Gilbert Elementary.