Page County officials warn FY26 budget may face shortfall; steps taken to trim costs

Miss Miller, presenting the FY26 budget update at the Jan. 22 board meeting, said the budget is based on an average daily membership (ADM) assumption of 28.30. The state’s funded ADM for the first half of the year had been reported at 27.05; beginning in January the state adjusted funding based on fall collections to 27.75, which Miller said will yield approximately $400,000 more per month starting in January.

Miller described a projected expenditure gap that originally approached $1.9 million; after immediate spending controls and departmental reviews she said the projection has come down to roughly $1.2 million. Major cost drivers include a 3% salary increase built into FY26 and an 18% rise in health-insurance costs, with Page County absorbing approximately $533,970 of the latter increase.

To narrow the shortfall, Miller described a combination of measures: holding some vacant positions ("breakage" savings estimated around $526,562), pausing discretionary school division fund releases, limiting department purchases to essential items, and reviewing capital and operating expenses for deferral. She said there were seven unfilled positions at the start of the year (six remain unfilled) and 14 staff on provisional contracts at lower pay rates, producing built-in salary savings.

Board members asked whether the recent state funding adjustment is retroactive; Miller said the adjustment should apply and reminded the board that a March 31 ADM count will determine final funding adjustments for the year. She also flagged unbudgeted capital expenditures totaling about $263,825 so far this fiscal year and encouraged the board to coordinate with the Page County Board of Supervisors about CIP funding priorities.

Miller said she will continue monthly updates and provide more detail as spring record collections and the March 31 ADM count are finalized.