GMSD board approves FY26-27 general fund budget on first reading, includes 2% staff cost-of-living increase

The Germantown Municipal School District board approved the district’s FY26-27 general fund budget on first reading after a presentation that framed higher personnel costs as the driver of a tight year. The motion to approve the first reading passed by roll call with every member voting yes.

Superintendent Mr. May summarized the budget’s key figures and pressures, saying the district expects roughly $700,000 in increased revenue tied to a higher state base but is facing higher costs including about $800,000 for textbook adoptions, $1.2 million added to health insurance expenses and roughly $700,000 in increased retirement contributions. "We are increasing our salaries for our staff," he said, noting a 2% cost-of-living adjustment and step increases for eligible employees.

Board presenters said the administration identified $3.7 million in operating reductions while preserving salary steps. The finance presenter reported reserves and fund balances elsewhere in the meeting: for the month ending March 31, the general fund balance was reported at $26,288,000 and the OPEB trust at $6,240,000.

Board member Ellis, who moved the budget motion, said he appreciated the time and "unpleasant conversations" that produced a budget that still provides a 2% COLA for staff. Vice Chair Griffith and other board members acknowledged the budget was "lean" and praised the effort to protect classroom investments and staff compensation despite hard staffing and program decisions.

The motion—moved by Board Member Ellis and seconded by Board Member Hendrickx—was approved on a formal roll-call vote called by the secretary; the transcript records unanimous 'yes' votes. Because the action recorded in the meeting was for a first reading, the budget will remain on the board’s track for subsequent procedural steps before final adoption.