Exeter board debates how grant appropriation changes what voters see as the 'default' FY27 budget

The Exeter School District board spent much of its meeting Wednesday unpacking how grant money is being folded into the proposed FY2027 budget and what that means for the default budget voters will compare on the ballot.

Molly, an administrator who led the budget presentation, told trustees that the packet shows food service, the general fund and grant appropriations combined in Article 1. She said the administration moved from an SAU-level $4,000,000 appropriation to a district-level approach, and that the packet's proposed grant appropriation was scaled to $3,500,000 after seeing a reduced pipeline of grants. "What you see here in this difference is the FY25 actual spend versus the FY27 proposed," Molly said, referring to the figures staff used to establish a default baseline.

Why it matters: under state budget rules the default budget is based on the prior year plus mandatory costs; board members said showing large grant dollars in the default can alter voter perception of how much the district wants to appropriate. Board member Patrick summarized his concern: "I just don't understand that whole concept" of using prior-year grant spending to set the default, arguing it could make the proposed budget look like a substantial increase even when the difference is driven by grants.

Administration's position: Molly said she and the district attorney, Gordon Graham, discussed options and that the attorney recommended using FY25 actual grant expenditures as the basis for the default rather than prorating the SAU $4,000,000 figure. She added the administration could lower the proposed grant number but warned that doing so "might leave grant money on the table" because the district's authority to accept and expend extra grant funding depends on the voted appropriation; she said she would research the procedural steps required to accept more grant revenue than currently budgeted and report back.

Numbers and context: staff noted the prior SAU appropriation that was treated as a single $4,000,000 item and said Exeter's FY25 actual grant expenditures were about $2.78 million; the packet shows the proposed grant appropriation that staff spread across district line items at about $3.5 million. The board asked staff to calculate Exeter's historical share of the SAU appropriation and to provide options that might make the default/proposed comparison clearer to voters.

Other budget items discussed: the presentation also covered salary and benefit adjustments, a reclassification of crossing-guard costs into the district budget, and several one-time technology and Chromebook expenditures in the prior year that depressed proposed tech spending for FY27.

Next steps: trustees asked administration to (1) confirm the legal process for accepting grant funds beyond the voted appropriation (Molly said she would consult again with the district attorney), (2) produce a list of grant-funded positions and services so the board can see what would be affected if grant dollars were reduced, and (3) return with revised packet language or alternatives at the next board meeting.

The board took no formal vote on the overall budget at the meeting; staff committed to follow-up reporting.