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District outlines first budget preview; staff explains tax-cap math and building-aid timing
Summary
District staff delivered the first 2025–26 budget presentation, explaining key revenue drivers (tax levy calculation, state aid and reserve funds), cost drivers (salaries, benefits, special education, debt service) and the timing of building-aid reimbursements.
District staff presented the first look at the 2025–26 budget, explaining how revenues and expenditures are calculated and identifying near-term items that will affect the proposed tax levy.
A presenter identified as a finance staff member explained that allowable tax levy growth is calculated from the prior-year levy after adjustments for tax base growth and exclusions; the commonly cited 2% figure is applied as the allowable levy growth factor. The staff member noted that December 2024 CPI was 2.9% and that the district must reconcile CPI, the tax-cap formula and local needs when building a budget.
Staff identified primary expenditure drivers as salaries and benefits, mandatory insurance and retirement contributions (ERS and TRS), debt service, special education and transportation. On the revenue side, staff highlighted the role of the tax levy, state aid (including foundation aid), payments in lieu of taxes (PILOTs), and other income. Pre-K funding was noted to be seat-based: the district receives state funding only for filled pre-K seats; the presenter said the district has 415 available pre-K seats and 368 were filled for the applicable reporting period.
On building aid and capital projects, the presenter said the district typically receives state building aid as reimbursement for eligible capital expenditures and that building aid is paid back over a multi-year period (the presenter stated the district's building aid is reflected over a 15-year span). Staff said a capital-exclusion transfer and the precise PILOT numbers were still pending and would affect the final allowable levy submission. The board was reminded that the district must submit an initial tax-levy figure to the state by March 1, though that submission can be adjusted later in the process.
Trustees asked for clarification on debt service (described as principal and interest payments on bonds or loans) and on the source of specific reserve balances; the presenter said reserve balances shown were as of June 30, 2024, per the audit, and that more granular capital accounting would be provided in upcoming budget meetings.
No appropriation votes were taken during this presentation; staff said more detailed budget hearings will follow at subsequent meetings.
