USD 383 previews FY26 budget with $750,000 preliminary shortfall; resident urges property tax relief

Dustin, a district staff member leading budget planning, told the Manhattan-Ogden USD 383 Board of Education on May 20 that the district was sharing preliminary fiscal year 2026 estimates and would refine them over coming meetings. “We—re really starting with very preliminary projections, on our budget planning for fiscal year '26,” he said.

The district projected roughly $2.3 million of additional revenue into the general fund from state and local sources and anticipated a total additional projected revenue of “just over 3,100,000.0,” Dustin said. He described inflationary and benefits pressures: the district uses the Midwest CPI to estimate nonpersonnel inflation (2 percent was shown as a planning figure) and said each 1 percentage point of inflation equals about $490,000 in nonpersonnel cost. Health-insurance premium renewal quotes had declined from an initial 19% estimate to 14%, but the district noted that “for every 1% increase, there is $74,000 expense to us.”

Even with those revenue increases, Dustin said the difference between projected revenue and expenses in the preliminary plan was about $750,000. He told the board staff would update the numbers before the district began transfer and needs work for next year.

During public comment before the business meeting, resident Gary Olds urged the board to seek property-tax relief for residents and pointed to district reserves. “If I took $40,000,000 at 5%, I'd have $2,000,000 a year in interest income,” Olds said, urging the board to consider returning some revenue to taxpayers "whether it's a half a mill, or 1 mill, or a quarter mill." He also said the district held “about $41,000,000 in reserve.”

Board members responded to the budget preview and public comment during the meeting. Members acknowledged the reserves discussion but emphasized constraints on how reserves and federally sourced funds can be used, and noted the district—s ongoing special-education structural deficit would complicate any one-time relief.

The board did not take action on the budget projections at the May 20 meeting; staff will provide updated numbers at future meetings.

Looking ahead, district staff said next steps include new projections next month and then beginning transfers and needs reports as the board works toward a final FY26 budget.

The May 20 meeting also approved a long consent agenda of donations and grants (see separate votes recorded in meeting minutes).