Budget committee approves Klamath County SD 2026–27 budget, sets permanent tax rate

The Klamath County SD budget committee voted to approve the district’s proposed fiscal year 2026–27 budget and set the permanent property tax rate at $4.0519 per $1,000 of assessed value, with $2,350,290 allocated to general obligation bond principal and interest in the debt service fund.

The action, taken by voice vote after committee discussion, will be forwarded to the full school board at its June meeting for formal adoption. Committee members and staff stressed the budget remains subject to post-audit reconciliation and supplemental adjustments if enrollment or priorities change.

Staff member (Speaker 5), explaining how state funding is finalized, said, "When we get our books audited, which we have to have those in by December 31 and to ODE by then as well, then they start the reconciliation process of, okay, what did we pay you? What was your taxes look like? What was your expenditures exactly? And what was your actual, enrollment ADM and so then they they true that up..." The staffer noted the district recently saw a reconciliation adjustment on the order of roughly $991,000 (later adjusted to about $968,000), funds the district expects to receive in May.

Committee discussion covered a mix of recurring and one-time items. Members debated a $30,000 line item for board stipends that a committee member had added; one member declared a potential conflict of interest. Staff (Speaker 5) advised the stipend can remain in the draft budget but recommended a formal resolution and procedure before payouts, noting an existing cap in policy: "Your policy is in place accordingly, to the $500, a month maximum." The committee agreed the money may stay in the budget but must be subject to board policy and a resolution before any payments are made.

Capital and maintenance projects were emphasized as priorities. Staff reported that the district plans to proceed with the Henley fire pond project and has a bid estimate of about $948,000 for that work. The Gilchrist schools bathroom remodels have partial costs already expensed, and previously approved roof projects remain on the list to be funded if balances allow. "We want to finish what we started and get that fire pond out of the way," staff said, urging conservative budgeting for current projects before taking on new work.

The committee also discussed revenues and reserves. Staff acknowledged she had not budgeted income from a possible sale of the Chiliquin Gym and said that the anticipated sale price is listed at $295,000; any proceeds would be captured later via a supplemental appropriation, likely put into a reserve fund or used where appropriate. The social studies curriculum purchase (about $462,000) was pointed to textbook reserve funds (600 series), and staff identified roughly $718,000 planned in the reserve referenced on the budget pages.

After discussion, the committee approved the budget by voice vote with multiple ayes and at least one abstention; members then approved the permanent tax rate and debt service appropriation by voice vote with no recorded opposition. The motions were procedural approvals to forward the package to the full board; final adoption and any subsequent changes (including those prompted by a new superintendent) will occur at the board meeting in June, and any needed adjustments will be handled through supplemental budgets as in prior years.

Next steps: staff will forward the approved draft to the board for adoption by June 30; any reconciliations or changes identified after the audit or by new leadership will be addressed by supplemental action.