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Tea Area School District presents preliminary FY26 budget, forecasts a $153,000 deficit
Summary
District finance staff presented a preliminary FY26 budget based on a 1.25% state aid increase and enrollment budgeted at 2,562; projected general fund deficit is about $153,000, and capital outlay certificates totaling $7.5 million were approved for three years of projects.
The Tea Area School District presented its preliminary fiscal year 2026 budget and related finance projections at the June meeting. District financial staff said revenue assumptions include a 1.25% increase in state aid and a budgeted enrollment of 2,562 students, an increase of 25 students from the current year. "The per student allocation comes out to $7,005.47 a student," Speaker 5 said.
The presentation noted capital outlay revenue aligns with the capital outlay plan approved in March, but officials have not yet included revenue from capital outlay certificates in the budget because project costs are still being finalized. The district approved $7.5 million in capital outlay certificates to fund a slate of projects over the next three years, Speaker 1 reported.
Special education funding in the draft budget is based on the December 1, 2024 child count and the SPED funding formula. District staff said SPED had a current-year surplus, which would help offset placements out of district but cautioned that new SPED hires and other changes could affect that outlook.
On the expenditure side, the general fund includes several new positions the district intends to add (an elementary teacher, a 0.5 tech assistant, a custodial/grounds position, a bus driver and a PAC coordinator) and assumed single coverage for benefits by default. Board members asked how benefit elections would affect costs; Speaker 5 said family coverage could swing payroll costs by roughly $8,000–$9,000 per employee and that final figures should be clearer by the September final‑budget approval.
The district projected a general fund deficit of approximately $153,000 for FY26 — an improvement from an earlier five‑year plan projection of about $230,000 in deficit spending — but presenters warned the number could change as staffing elections and finalized project costs are confirmed. The board did not take a final adoption vote on the FY26 budget; the presentation was described as preliminary, with another review planned in July and final approval targeted for September.
