District business staff delivered the first budget workshop for the 2025-26 school year and warned of near-term uncertainty tied to state aid and transportation costs.

The presenter described the process: the initial budget is built by rolling forward the current year and applying known increases. Key drivers identified were transportation, salaries and benefits, technology, special education and debt service. The presenter said much state-level data is still unavailable and that the district's preliminary tax-gap estimate is "a little less than 1%," which staff estimated would equate to roughly $100,000.

On health insurance, the presenter said recently released state rates show a combined average increase of about 3% for active and retired employees, a welcome change from prior double-digit increases. The presenter added, however, that foundation-aid formula changes under consideration by the governor could lower state aid: "If she was to touch the formula, Elwood could lose roughly $300,000," the presenter said.

Transportation drew extensive questions. Administrators explained the district negotiates five-year contracts; the current vendor (Huntington Coach) was the only respondent to the recent RFP. The presenter said the contract mapped annual increases over five years and that this year's base increase is roughly 7.6%. The administration estimated the district operates about 17 buses and vans and noted barriers to buying and operating a district-owned fleet: garage space, maintenance and insurance costs, driver hiring and the additional unemployment costs for drivers in summer months.

Administrators also flagged the 0-emission bus mandate as a complicating factor: electric buses and their battery systems raise infrastructure and insurance concerns that could increase initial costs.

The board pressed for more detail on the tax-cap formula and requested a follow-up budget workshop in January when state numbers are expected. Administrators said the draft base budget will be available in January, additional community presentations will follow through April, the board intends to adopt a budget in April and the budget vote will occur in May.

Next steps: administration will provide a more detailed tax-gap analysis and updated revenue projections at the January budget workshop and will proceed with RFPs in January for transportation and several other services.