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Committee keeps school revenue estimates unchanged after debate over sales‑tax projection

Budget and Finance Committee Meetings · May 13, 2026
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Summary

After a lengthy discussion about whether to raise the local sales‑tax projection on state advice, the Budget and Finance Committee voted 5–2 to approve school revenues as presented and not increase the sales‑tax estimate.

The Budget and Finance Committee debated whether to adopt a state official’s recommendation to increase the local option sales‑tax projection for schools from 1.2% to 1.5% and use the extra revenue to reduce property‑tax pressure.

Mister Gulley urged caution, noting the risk of overestimating sales tax and citing a one‑time windfall tied to Enbridge deliveries that inflated recent receipts. "I think it's not smart to estimate something that was a one time large, large increase," he said, urging conservative revenue estimates. The chair provided sales‑tax collection figures through March: $2,803,555 in the current fiscal year, with 56.31% allocated to schools, and noted there were three months remaining in the fiscal year.

Supporters of the state recommendation argued the 1.5% projection still leaves a cushion and would help avoid a property‑tax increase. Opponents noted multiple counties that have had to revise over‑optimistic sales‑tax projections. After discussion the committee voted 5–2 to approve the school revenues as presented without adjusting the sales‑tax projection.

School representatives thanked the committee; Miss Coughlin said the funds will be used for fieldhouse bathroom renovations, raises for non‑certified staff and additional teaching positions at the middle school.