Jefferson City board adopts budget amendment after $30 million bond sale; projects $4 million state boost and teacher pay raises

The Jefferson City School Board on the evening of its May meeting approved a budget amendment reflecting proceeds from a recent $30,000,000 bond sale and reviewed the district's preliminary fiscal year 2025'26 budget, which assumes roughly $4,000,000 more in state aid and funds planned teacher pay increases.

Sherry LePage, a district staff member who presented the amendment, said the market "was in a great place, and we ended up issuing our $30,000,000 in bonds, which sold at a premium." The amendment records the premium and the underwriter discount on the revenue side and the issuance-related expenses on the expenditure side. The board approved the amendment by voice vote.

The board also voted to waive a required second reading and adopt the policies presented by Policy Committee Chair Suzanne Luther. No substantive changes to the policies were discussed on the record at the meeting.

In a detailed budget presentation, Mr. McGraw, a district staff member, told the board that the Missouri legislature had fully funded the state foundation formula and that the district's recalculated state adequacy target and other formula changes should yield about $4,000,000 in additional state revenue for 2025'26. The presentation said the new revenue will help the district transition from the loss of federal ESSER COVID funds and support what the district described as its largest teacher pay increase in 17 years.

The presentation outlined specific compensation changes the administration recommends: a one-step increase on the salary schedule, a $1,500 increase to base pay, and a $300 base increase tied to a 169-day calendar incentive. The district said the changes would bring the recommended starting teacher salary to about $43,000. The board was told total raises and associated benefits for FY26 are projected at approximately $3,900,000.

Other budget pressures noted in the report include costs related to opening a new early childhood building (including nine new classrooms), higher property insurance and maintenance costs, a rise in food and supply lines (about $88,000), and an increase in the district's employee health insurance contribution. The presenter said the health contribution change will cost the district an additional $520,000 plus about $75,400 in retirement contributions associated with that benefit change.

The district's summary slide projected operating revenues of about $132,000,000 for FY26, operating expenses of roughly $126,000,000, and a facilities transfer of $3,600,000. The projection showed a fund-balance ratio of about 54.8% in the current year, declining to about 54% in FY26 and roughly 52% in FY27; presenters said the district does not expect to begin deficit spending before FY28 if conditions remain as presented.

Presenters cautioned that the appropriation bills allowing the increased state aid must still be signed by the governor, though the presenters noted Article IV, Section 26 of the Missouri Constitution was cited on the record as prohibiting a governor's line-item veto of public school appropriations. The administration said it would monitor May and June revenue estimates and the governor's signature status before returning in June for final budget approval.

The board also held several routine votes by voice, approved the consent agenda, and moved into a closed session under Missouri Revised Statutes Chapter 610.021 (sections 3, 4, 13 and 14) for personnel and legal-record exemptions. The motion to enter closed session was made by Brad Bates and seconded by Suzanne Luther and passed on a roll call vote.

Closing and housekeeping items noted at the meeting included summer school dates (June 2'26), the district observance of Juneteenth on June 19, and the board's next meeting scheduled for June 26.