The Lake Forest School District Board of Education on Aug. 28 approved a financial position report showing approximately $8,000,000 in discretionary local funds as of July 1 and unanimously approved the districts preliminary fiscal year 2026 budget.

The board voted 5
0to00 to approve the preliminary budget and the financial position report after a presentation by the districts finance staff. The presentation described the July 1 report as a required snapshot under Delaware law and the starting point for statutory submissions to the Delaware Department of Education.

The presentation noted the districts discretionary balance rose from about $6.4 million the prior July 1 to roughly $8.0 million, driven by an approximately $900,000 budget surplus, higher-than-expected collections and routine underspending. Finance staff identified one-month local payroll (coded in the report at $950,000) as the key statutory threshold; the districts projected available balance on Oct. 15 was presented as roughly $9.0 million, well above the threshold.

Board members and staff discussed drivers of the FY2026 preliminary budget. State funds account for roughly three-quarters of the total budget; the states recent 7.28% teacher pay increase and the possible future reduction in division 3 equalization funds were highlighted as important variables. The presenter also described an enhanced minor capital allocation and a mental-health block grant for high-school services that the state provided this year rather than adding positions into unit count.

On local revenue, staff said the district left the current-expense tax rate unchanged and projected modest assessment growth; they cautioned interest income will likely be lower than recent years as market interest rates have fallen. The board approved modest increases to per-pupil school allocations (a $2 per pupil increase districtwide, plus an additional $2 at two schools to support arts) and heard about planned discretionary uses including an AV upgrade at the high school (a $45,000 set-aside with an expectation costs may be higher), athletics and aquatics operating costs, and contracted tuition for in-district placements such as Highroads.

Board members asked how the large reserve might be used if the state denies a requested capital grant (see separate coverage of the WT Chipman CN request). The superintendent said the district is preparing a strategic plan to prioritize projects such as pool resurfacing, tennis court work and track replacement and could combine reserves, minor capital funds and impact fees if necessary.

The board approved the financial position report and the FY2026 preliminary budget by unanimous votes. The board will receive further budget detail later in the fiscal cycle when state unit counts and other data are finalized.