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Fremont City Schools forecast shows modest FY26 surplus but deficits loom by FY29
Summary
The board heard a five-year financial forecast projecting about a $1 million surplus in fiscal 2026 but structural deficits by fiscal 2029–30; trustees were told state legislation and a possible homestead exemption could reduce local revenue by roughly $500,000.
The Fremont City Schools board on Monday reviewed a five-year budget forecast that projects a roughly $1 million surplus at the end of fiscal 2026 but warns of deficit spending beginning in fiscal 2029.
Treasurer Megan presented the forecast, saying the district’s “total revenue should actually say, for fiscal year 26, $52,900,000” and that the district is projecting “about $1,000,000 at the end of the year.” The report shows revenue drivers as real estate (26 percent), state funding (30 percent) and income tax (21 percent), and it projects rising salary and benefit costs that push the district toward deficit years later in the five-year window.
The board also discussed local impacts of pending state actions. A representative from the finance committee warned the district “would lose about $500,000 in revenue from this exemption” if county commissioners adopt a homestead exemption that reduces property-tax collections.
Members and staff highlighted specific cost pressures: purchase services (including the district’s educational service center contract and Northpointe staffing) remain a large budget item, transportation costs have increased substantially (the board discussed bus prices rising from roughly $90,000 to about $130,000), and special-education enrollment has grown, increasing related service and staffing needs. The treasurer said the district has used transfers and reserves to save for capital projects and severance obligations tied to retirements.
Officials also noted discrete appropriations tied to ongoing work: a then-and-now auxiliary-fund adjustment related to Bishop Hoffman purchases, an increased appropriation for the building project (fund 004) after updated estimates, and a new United Way grant to start an after-school program.
The board approved the forecast and the related appropriations by unanimous roll-call votes. Trustees said they would continue monitoring state legislation and earlier proposed reforms to property-tax rules that could affect local revenue assumptions.
The district plans to publish the full forecast and assumptions in the board packet; no further fiscal actions were taken during the meeting.
