Board approves first 2025–26 budget adjustment; staff cite $4.955M senior property tax freeze impact

Finance staff presented and the board approved the first 2025–26 budget adjustment, which reflects updated DESE grant allocations and recalculated basic-formula revenue.

Staff reported a total revenue increase of $560,007.69 tied primarily to grant awards and an updated basic-formula calculation, with a corresponding increase in expenditures of about $746,000 to account for grant-funded spending, three additional positions added after the budget approval and building carryovers. The presentation put the operating funds deficit at roughly $1.6 million and noted a larger overall fund effect tied to planned prop S bond expenditures.

The finance presenter highlighted the fiscal impact of a state program described in discussion as the senior property tax freeze (referred to in the presentation as Senate Bill 190), saying the district’s calculated impact from the law was about $4,955,000 combining operating and debt-service impacts. Staff cautioned that this is an ongoing annual revenue loss for qualifying parcels that could grow if more taxpayers enroll in the program.

Board members asked about cohort and grade-to-grade enrollment declines (noting consistent losses between fifth-to-sixth and eighth-to-ninth grades), the assumptions in the demographer’s projections and the state foundation-formula discussions at the legislative level. The board approved the budget adjustment by voice vote; staff said they will continue monitoring finances, meet with DESE representatives for APR/allocations questions and bring additional adjustments as more data arrive.