Bentonville board allocates property-value revenue to staff raises, approves 3.5% across-the-board increase

The Bentonville School District Board of Education voted March 18 to direct most of a one‑time revenue increase to staff compensation, approving a recommendation that translates into a 3.5% across‑the‑board increase on salary schedules for the 2025–26 school year.

District finance staff told the board the district expects an $8.9 million revenue increase driven largely by higher property values; the board approved applying 74% of that increase—about $6.6 million—toward pay raises. District staff said most employees will also earn a step increase, producing an estimated overall pay increase of roughly 4.8% for many employees.

Board members heard detailed fiscal projections before the vote. Finance staff reported a current all‑funds balance of $78.3 million—down $2.2 million from the prior year because of completed building projects and kitchen equipment purchases—and said the operating fund balance is about $52.3 million (20.9% of that fund). Staff told the board operating revenues are up $7.1 million year over year and expenditures are up $7.7 million, largely because of salaries and student growth.

“We have a lot of uncertainty,” the district finance presenter told the board, citing potential utility cost increases for water, sewer and electricity and ongoing state legislative activity that might affect concurrent‑credit funding and other costs. The presenter said the 74% allocation to raises is intended to balance staff pay needs with those uncertainties and that a 10‑year fiscal impact analysis showed the district would remain within its fund‑balance policy.

The board approved the action on a unanimous vote. Motion to approve came from Willie (board member) and was seconded by Jeremy (board member). The motion passed with recorded affirmative votes from Tatum, Willie, Jennifer, Jeremy, Becky and Kelly.

The vote followed questions about long‑term capital planning and whether the raise decision would affect planned transfers to the building fund. Finance staff replied that the 10‑year plan accounts for the raises and that planned projects and transfers remain, but noted the district will continue monitoring revenues and expenditures.

The board also approved a related routine financial item at the meeting: a motion to surplus three school buses to be sold on govdeals.org, which was included in the financial packet the board voted to accept earlier in the meeting.

Board members said they took the decision with the dual goals of responding to local cost pressures on employees and preserving the district’s fiscal stability.

Looking ahead, the district said staff will present more detail as budget work continues and as state legislative changes become clearer.