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Lincoln administrators say state-aid drop forces $150,000 fund-balance ask, 3.75% budget proposal
Summary
Superintendent Kevin McKenna told trustees a projected cut in state aid and the end of an enrollment buffer create an 'almost $500,000 hit,' and administrators propose a $150,000 draw from fund balance and a 3.75% FY27 budget ask to avoid deeper cuts.
Superintendent Kevin McKenna told the Lincoln budget board that the governor's proposed budget reduces the district's projected state aid and removes an enrollment buffer that has helped smooth funding swings.
"So, really, it was a almost $500,000 hit that that came in," McKenna said, and the administration is recommending using $150,000 of fund balance to keep the town-side ask to 3.75 percent.
The administration outlined several drivers behind the request: negotiated salary increases for teachers (under 3 percent in the current contract but still a significant recurring cost), a conservative 5 percent assumption for medical-rate increases, and the loss of a one-time enrollment buffer that had previously lessened the impact of state-aid volatility. McKenna said those items, combined, left the proposed operating budget short without moderate use of reserves.
Business Administrator Melissa Devine, who introduced herself to trustees and summarized her municipal finance experience, said the administration followed standard budget practices—meeting with principals and responsibility-center heads and separating grant-funded positions from locally funded roles. She warned that moving grant-funded positions into the operating budget creates permanent local obligations that may be difficult to reverse.
Trustees pressed administrators on alternatives, including additional revenue from CTE tuition and potential savings from attrition. McKenna said the proposal reduces four positions (a net 2.5 reduction after attrition and consolidation) to meet the 3.75 percent target while preserving federally funded roles where possible.
The board did not take a final vote on the FY27 proposal during the session. McKenna and Devine asked trustees to submit follow-up questions in writing and said updated materials and a spreadsheet version of the packet would be circulated before the next meeting.
