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Clayton superintendent outlines preliminary 2025–26 budget: balanced, locally funded and planning modest capital work
Summary
The district presented a preliminary $79.6 million revenue budget for 2025–26, described the fund-balance cycle, modest revenue growth, planned capital items (furniture, roofing, possible bus replacements) and noted no major construction in next year's budget; board members asked questions about reserves, the senior tax freeze and electric buses.
District finance staff presented a preliminary 2025–26 budget to the Board of Education on May 6, showing a balanced spending plan, mostly local revenue and planned capital maintenance while long-range facilities planning continues.
The district's revenue projection for all funds is approximately $79.6 million, the presentation said, with about $75.8 million locally funded. Expenditures were presented at roughly $77.0 million. Presenters said the budget is preliminary and about 95% complete; some figures remain subject to change.
Finance staff highlighted that the district's fund-balance calculations use the June 30 snapshot and that cash flow is seasonal because most property-tax revenue is collected in December and January. That pattern typically produces a low point for operating reserves in November, presenters said.
"I would recommend, respectfully, that we stay at least at 35% [operating reserves] in June," a presenter said during Q&A; the district noted its current June 30 operating reserve is above 60% under present estimates.
Planned capital purchases in the preliminary budget included furniture refreshes, targeted pavement and roof repairs, electrical switch-gear upgrades and replacement of up to three school buses that have reached typical end-of-life. Finance staff cautioned that the school-bus market and engine availability may affect delivery timing. Staff said electric buses are being explored but are currently more expensive (presenter noted electric bus prices nearer $300,000) and may not meet range needs for longer field trips; grants and evolving technology may change feasibility.
Presenters said the budget supports strategic-plan priorities, including student safety, curriculum and staff well-being. The district expects modest revenue growth (roughly 3%) and modest expenditure growth (about 1.6–1.7%) in the forecast shared at the meeting.
Board members asked about the senior tax freeze recently enacted at the state level; finance staff estimated the program may cost the district around $6 million over the next decade as participation grows and noted the impact would accumulate gradually. Staff also discussed the difference between operating levies and debt levies, saying the senior freeze applies to operating levies and not the debt levy.
District staff emphasized there are no large construction projects included in next year's budget while the long-range facilities master plan is under development; $400,000 was included as a placeholder for architectural services tied to planning work.
No final budget vote occurred at the meeting; staff will return with a final budget for board action at a later meeting.
Provenance: The transcript documents the preliminary budget presentation, Q&A about fund balances and bus replacement discussions and questions about the senior tax freeze and operating reserves.
