Sto‑Rox projects nearly $1M shortfall for 2026–27; board considering 0.5–1.0 mil tax scenarios

Scott Reed presented the 2026 budget development outlook to the Sto‑Rox School District board and told members the district is projecting a shortfall of $992,650 for the 2026–27 fiscal year under baseline assumptions.

Reed said the projection does not yet account for possible teacher contract settlements and identified major cost pressures including potential charter‑school tuition increases, higher health‑insurance premiums and capacity charges for electrical consumption. He reviewed three tax scenarios the board may consider: a 0.5‑mill increase (the base assumed in the presentation), a 1.0‑mill option and the act‑one index maximum (an example maximum cited at roughly 1.6581 mil depending on the index). “Anticipated revenues are insufficient and estimated to generate a shortfall of $992,650,” he said.

Reed also reminded the board the district remains under financial recovery requirements: to exit, PTE requires three consecutive years of positive fund balances plus five‑year projections showing continued solvency. He noted the district did not require supplemental state empowerment funding for 2025–26 and that cyber charter expenditures were expected to be lower than budgeted due to a state funding policy change.

Why it matters: The projected shortfall and the recovery criteria frame the board’s options for balancing the coming year’s budget, including whether to use unassigned fund balance, transfer funds to capital, or seek additional tax revenue. Reed presented examples of the impact on household levies for multiple assessed values to illustrate taxpayer impact.

Next steps: The presentation set a timetable of committee meetings and a final board vote in June on the 2026–27 millage rate. The board did not adopt a millage increase at this meeting; Reed said refinements will continue as state and federal funding decisions become clearer.