Stratham officials warn health-insurance hikes and bond payments will pressure FY27 budget
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Summary
District administrators told the board they have begun FY27 budget work and warned that a statutory change moving grant appropriations to the districts, health-insurance increases of roughly 15.5%–17%, and the inclusion of bond debt service in the operating budget will put upward pressure on next year’s tax rate.
District administration told the board it has started work on the FY27 operating budget and highlighted several items likely to increase next year’s cost: a move to have districts appropriate grant funds rather than the SAU; sizable health-insurance premium increases; and the inclusion of the bond payment in the district’s operating budget.
Administration explained auditors have been finding that the legal owners of grant funds are the districts, not the SAU, and as a result the district will begin appropriating grants at the district level. The joint board will review the SAU budget at a joint meeting next Monday and will see the district-appropriation approach reflected there.
On benefits, administration said health-insurance renewal notices show increases ranging roughly from 15.5% to 17% across districts. Officials said they are reviewing other budget areas to mitigate those higher benefits costs.
Board members and staff also discussed the recently approved school construction bond schedule. Finance staff explained the bonding schedule and said the district’s first full-year bond payments will be reflected in the operating budget going forward. The transcript shows the first payment due 02/15/2026 for about $286,000; administration said the full-year bond cost will be material and will raise the operating budget significantly in the coming year. Board members discussed the need for clear public communications explaining that part of any budget increase is debt service tied to the construction bond that was previously voted as a warrant article.
Separately, administration noted negotiations with the teachers’ bargaining unit are ongoing and that a contract renewal in the same year as higher benefits and a rising bond cost will complicate the FY27 budget; board members discussed early public outreach and a possible February fireside chat to explain the budget context to the community.