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Webster Groves district projects roughly $5 million operating gap as state funding falls short
Summary
District business staff told the school board the 2026–27 operating budget now shows a preliminary $5 million deficit driven by lower-than-expected state revenue, rising benefits costs and a senior-property-tax credit; staff urged community input to set spending priorities before cuts.
Jacob Myers, the district business presenter, told the Webster Groves School District Board the district faces a preliminary operating shortfall of about $5 million for 2026–27 driven by state funding changes and rising expenses.
Myers said the state budget sent to the governor contained a roughly $190 million shortfall from what DESE requested and that the district is already experiencing withheld payments this year. "So for us, that'll be about a $700,000 loss for the current year," Myers said, adding that the district may see an additional $975,000 to $1.7 million hit next year. He said the district projects a $5,000,000 deficit now but that removing a few recent shocks would reduce the gap to about $1.4 million.
The presentation traced the shortfall to several sources: decreased casino and lottery revenues that feed the foundation formula and Prop C distributions, a county senior property-tax freeze and compounding cost pressures such as health insurance increases, which Myers estimated have grown substantially in recent years. The district receives roughly 61% of its revenue from property taxes and about 12% from the state, he said.
Board members pressed for specifics about how long reserves can be used and when cuts would start to affect classrooms. Myers said the district aims to keep a fund balance above 25% to preserve cash flow for payroll and operations; he warned that levels below that threshold would force short-term borrowing or more abrupt program cuts. "If we fall below that 25% threshold, we'll have to issue short-term borrowing to make payroll in December," Myers said.
Board members also asked about the impact of several legal and legislative changes. Myers reviewed the effects of the Blankenship court decision on levy calculations — a change that reduced expected levy revenue and now represents an annual, compounding loss — and explained how the county's senior property-tax freeze has reduced growth the district could have captured.
The board did not make spending decisions tonight. Myers and other staff said the district will use a June 3 community forum and an ongoing survey to solicit priorities before proposing specific reductions or budget amendments. "The first step really is twofold," Myers said, calling for shared priorities to guide any necessary reductions and for continued community input through strategic planning.
What's next: staff will bring final budget recommendations and proposed amendments in June, incorporating updated state numbers and health-insurance rates.
