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Colonial School District finance committee proposes 3.5% tax increase to close $3.9M gap; highlights rising special‑education costs
Summary
Finance staff presented a proposed final 2026–27 budget showing a $3.9 million deficit and recommended a 3.5% tax increase; staff emphasized personnel and special‑education legal costs as primary pressures and outlined the 30‑day public inspection and June adoption timeline.
The Colonial School District finance committee reviewed a proposed final budget on April 6 that projects $164.88 million in revenues and $168.78 million in expenditures for 2026–27, creating a $3,896,839 shortfall. Finance staff recommended a 3.5% tax increase to help close the gap and urged a prudent use of reserves.
Finance staff explained the proposed final budget will be posted for public inspection after the April 16 school board meeting and must sit for at least 30 days before final adoption, which staff said is anticipated in early June. The finance presentation listed roughly $12.4 million in unassigned/unrestricted funds and about $14.3 million in committed/assigned funds (total reserves ~ $26.8 million). Staff emphasized committed funds are earmarked for specific purposes and cannot freely offset tax dollars.
On homeowner impact, staff estimated a 3.5% tax increase would cost roughly $92.73 per year on a $100,000 assessed value and about $185 per year on a $200,000 assessed value (presented as annual figures). The committee discussed how each tenth of a percentage point in the tax rate corresponds to an approximate $120,000 change in fund usage for budget balancing.
Finance staff flagged personnel and benefits as the dominant budget drivers (roughly 75–80% of the budget) and detailed multi‑year enrollment increases that are increasing staffing needs; the committee also cited special‑education costs and related legal fees as significant and growing pressures. Staff reported a $1.6 million increase in professional services tied to special‑education spending and described efforts to back‑bill other districts for temporary placements (one set of invoices for ESY services was reported at about $235,000).
Why it matters: the proposed tax increase and budget choices affect local taxpayers and district services. Committee members discussed the need to balance maintaining staffing and programs against reserve management and taxpayer impacts.
Next steps: if the committee approves the proposal for the April 16 agenda, the proposed final budget will be posted for public inspection for 30 days; the board is expected to consider final adoption in June. Staff said they will continue to monitor access fund draws, special‑education costs and any material revenue/expenditure changes before final adoption.
