Board approves advertisement of 2026 budget as finance director warns of appropriation shortfall

The Edgewood School Corporation board voted to advertise the 2026 budget after a detailed review by Paul Fitter, who outlined how recent legislative changes and estimated tax credits affect the district’s levy and appropriation needs.

Fitter told the board that Form 3 (the advertised budget form on the state’s Gateway site) shows an estimated school operations maximum levy of $5,847,000 for 2026, reflecting a 4% increase allowed by state law for that year. He said the property tax cap credit estimate rose significantly—from roughly $220,000 in 2025 to an estimated $1,426,000 in 2026—partly because of recent legislative adjustments affecting taxpayer credits.

Fitter cautioned that the education fund currently shows a shortfall in appropriation ("in the red") and that the district will likely need to request an additional appropriation in October to obtain permission to spend expected education funds, even though cash is available. He said he increased the 2026 education budget by $2,000,000 in the draft to better align with expected spending and revenues and noted that debt service advertising included a placeholder for up to $4,000,000 of potential new debt if the board chooses that route, which would raise debt service levy estimates substantially.

Board members expressed concern about budget pressures in coming years and asked administrators to identify savings and options. The board approved a motion to advertise the 2026 budget on Gateway so the formal notice and documents may be posted for public review.