Preliminary 2026–27 budget shows modest available recurring funds; board hears hold‑harmless explanation

Budget Director Brian Gustafson presented the district’s preliminary general fund budget on April 28, describing it as the first of three submissions toward June adoption. Gustafson told the board the draft identifies roughly $5.1 million available for ongoing recurring uses and explained how the state School Finance Act’s phase‑in and hold‑harmless calculations affect next year’s program funding estimate.

Gustafson said the district’s program funding estimate for fiscal 2026–27 is about $325.2 million, based on an estimated funded pupil count of about 27,786.1 and an implied per‑pupil rate near $11,705. He described a component of that increase as a temporary, one‑time element commonly called “hold harmless” that can mask year‑to‑year volatility.

The presentation flagged several expenditure assumptions: a projected 5 percent increase in health‑benefit costs (about $1.6 million), fuel and utility pressures, and a need to budget more for leaves of absence. Gustafson noted district adjustments already identified — about $8.2 million less in school‑level (student‑based) budgets and approximately $2.9 million in central department reductions — but said compensation decisions and negotiations remain to be finalized.

Gustafson also reviewed reserves and contingency strategy, telling the board the district has set aside an assigned reserve for funding uncertainty and aims to rebuild its Board contingency reserve toward a long‑term target. “We’ve got a difference of $5.1 million,” he said, describing the gap between revenues plus beginning fund balance and proposed expenditures in the draft.

Board members asked about SRO/discipline reporting and requested follow‑up on charter growth and restricted reserves. The presentation will be updated before the May 26 proposed budget and the June adoption vote.

The board received the informational presentation; no adoption vote was taken.