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Tea Area School District previews FY26 budget; projects about $153,000 general-fund deficit in preliminary numbers
Summary
District staff presented a preliminary fiscal year 2026 budget showing a projected general-fund deficit of roughly $153,000, conservative enrollment projections and assumptions about state aid and staffing costs; the board will review an updated draft in July and adopt the final budget in September.
District business staff presented a preliminary fiscal year 2026 budget at the June Tea Area School District 41-5 board meeting, projecting a general-fund deficit of about $153,000 under current assumptions.
The presentation said revenue projections assume a 1.25% increase in state aid and a conservative enrollment of 2,562 students (an increase of about 25 students). The staff presenter reported a per-student allocation used in the formula of $7,005.47.
Special education (SPED) revenue was based on the December 1, 2024 child count and the state SPED funding formula; the presenter said SPED currently shows a surplus in the preliminary numbers but cautioned that new out-of-district placements could change that. Capital outlay revenue and expenses tied to the March-approved capital plan were not yet fully included because specific project costs remain under development.
On the expenditure side, the preliminary general fund includes several new positions: one elementary teacher, a 0.5 tech assistant, one grounds or custodian position (to be determined), one bus driver, and a PAC coordinator position; it also includes an estimated insurance-rate increase. The presenter noted benefit elections by new staff can swing costs materially (single coverage assumed for projections; family coverage could raise costs by roughly $8,000–$9,000 per staff member).
Food service was projected to operate at a deficit in the preliminary numbers, covered by a healthy existing fund balance, while the SPED fund shows a preliminary surplus. Staff emphasized that the current FY26 budget is preliminary, that further adjustments would appear in a July draft and a final budget in September, and that the district will update figures once capital project costs and final federal/state grant allocations are known.
No final vote on the budget took place; the board received the presentation and will review revised drafts as staff refines revenue and expense assumptions.
