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Finance committee warns of multi-million-dollar gap; offers tax scenarios for 2026-27 budget
Summary
The district finance presentation showed a roughly $8.35 million baseline gap for the 2026-27 proposed budget (expenditures up ~4.2%, revenues down ~2%) and outlined scenarios that could require property tax increases; the finance committee will meet May 11 and the board will consider a proposed-final budget in mid-May.
Mr. Bishop, speaking for the finance committee, gave the board a detailed look at the district's proposed 2026-27 budget and several budgeting scenarios designed to close a multi-million-dollar shortfall.
"So bottom line of the expenditures is uh a 4.2% increase in the total expenditures for this budget," Mr. Bishop said, summarizing the primary projection he presented to the committee and the board.
The presentation compared expenditures and revenues under a baseline that excludes any real-estate tax increases. Under that baseline, Mr. Bishop said expenditures rise by about 4.2% while projected revenues are down roughly 2%, leaving a baseline gap of about $8.35 million. He identified specific cost pressures including a roughly 6.2% rise in special-education costs, transportation contract increases (the district is in year six of a seven-year contract with an annual 2.5% increase), higher substitute costs embedded in a roughly 5.3% increase in central administrative salaries, and an increase in athletic trainer services from about $60,000 to $90,000.
The presentation also flagged benefits and mandated costs: the state retirement rate referenced in the meeting was cited at about 33.59% for the coming year and health insurance projections of an 8% increase. Mr. Bishop said the district continues to transfer $200,000 annually to a capital reserve for roof and other long-term projects.
To illustrate options, finance staff modeled several scenarios that combine act-one index adjustments, STEB (state tax-equivalency base) changes and millage adjustments. One example shown in the presentation would yield an effective tax increase for the average property of about 11.7% under certain assumptions; alternate scenarios produced lower effective increases (9.3%, 5.75%, or below 5% depending on millage decisions and index calculations). Mr. Bishop emphasized that these were model scenarios and that the board will need to weigh priorities and public impact.
The committee set dates for the next steps: the finance committee aims to recommend a proposed-final budget on May 11, the board is scheduled to consider a proposed-final budget vote in mid-May (agenda references May 14), and the district plans a final budget vote on June 18. Mr. Bishop cautioned that some state allocations (transportation subsidy, gaming relief, federal allocations) remain uncertain and could change revenue projections before a final vote.
Board members asked clarifying questions during the discussion; no final budget vote occurred at the workshop.
