District projects modest deficit for FY26; outcome depends on state funding

District staff presented an initial preview of the fiscal year 2026 operating budget and told the Jefferson City School Board that the district currently projects a modest operating deficit under present state funding assumptions.

A staff presenter described revenue uncertainties tied to a reassessment year for property taxes and to pending state decisions on full funding of the foundation formula. The presenter said reassessment and new construction could yield roughly $500,000 in additional property tax revenue, but that amount was conservative and subject to change. The presentation also referenced the State Adequacy Target (SAT) and the Department of Elementary and Secondary Education (DESE); staff said full funding of the recalculated SAT could add an estimated $3 million to $4 million in state funding, but the governor's budget did not recommend full funding.

On the expenditure side, staff proposed a $1,500 base raise plus one step for teachers (mirroring the prior year's highest raise), increased staffing tied to a new early childhood center (including nine preschool teachers and nine paraprofessionals), and a district contribution to health insurance rising from $430 to $470 per employee. Total projected operating revenues were presented at about $128 million with operating expenses at roughly $126.5 million plus a planned transfer for facility upkeep; under current assumptions the projection showed a roughly $2.2 million deficit for FY26. If the state fully funds the foundation formula, staff said the district would instead project a small surplus.

Ending: Staff emphasized that these are preliminary figures; the board will review a more complete budget as state and fiscal data solidify and will take formal budget actions in future meetings.