Finance committee previews proposed 2026‑27 budget: 3.5% tax increase, $5.9M deficit and added special‑education positions

Tony Rack presented the proposed preliminary final budget that the finance committee will ask the full board to advertise on May 21. Key figures: a 3.5% tax increase projected to raise local revenues by about $10.3 million, an estimated $5.9 million budget deficit for 2026‑27 (compared with a $6.4M deficit in 2025‑26), and total reserves of about $35 million with roughly $20 million unassigned. Rack said the district is taking a conservative budgeting approach and that the proposed numbers allow time for adjustment before final adoption.

Rack told members the budget includes a 5% increase in employee healthcare contributions and that the district aims to maintain an $18 million healthcare fund balance. He said personnel remains the largest portion of expenditures and that administration added 14.4 full‑time equivalent positions—primarily to expand autism support (AS) and special‑education capacity: teachers and 13 PCAs and other supports across specific schools. "We have 14.4 new positions, all of which are in special ed," Rack said.

Committee members questioned the composition of revenue increases (earned income tax vs. assessed value) and asked for more transparency on state revenue timing and the homestead exclusion flow‑through to taxpayers; Rack clarified that some state homestead funds are returned to taxpayers and not available as net new district revenue. Members also discussed MBIT contributions, physical space constraints at regional technical programs, and the district's approach to reserves if the deficit materializes. The committee received the proposal and will revisit the budget at a June 11 finance meeting before the board votes on June 18 (statutory deadline June 30).