Board hears budget risks — insurance and utilities drive higher costs; tax-levy estimate ~1.89%

Board members received a detailed update March 20 on the 2025–26 budget timetable, major cost drivers and potential voter propositions.

Staff member (S5) said the district is planning for a budget of just over $23.5 million and cited several significant cost pressures: health-insurance premiums that are expected to rise roughly 14.3% (an increase hospitalized in presentation as nearly $300,000), recent gas and electric rate spikes and concerns about future utility increases. "Health insurance for the third year in a row has gone up more than 10%. This year we know it's gonna be 14.3%, which is an additional almost $300,000 to the budget," the presenter said.

The presenter outlined timeline items: board-of-education ballots available March 21; the board will adopt the budget at the April 10 meeting; property tax report cards must be submitted the following day; the budget must be complete by April 30 and the district plans to publicize a legal notice before the April meeting.

Federal and state funding uncertainty was highlighted. Staff warned that federal Title I and school-lunch funding proposals in Congress could reduce the district’s federal revenue; the presenter said a large cut to national school-lunch funding would jeopardize continuing free meals for the 2025–26 school year. The district’s proposals for bus replacement and other propositions that will appear on the ballot were also summarized.

Board direction and next steps: administrators recommended continuing to refine revenue assumptions as state aid proposals solidify and to return with a more complete budget for the April meeting. The board was also briefed on planned use of one-time reserves (roughly $125,000) and prior arbitrage interest to help limit the tax-levy impact this year.