Liberty Public Schools previews 2026–27 budget, flags multi‑million dollar shortfall

Liberty Public Schools officials on Wednesday presented a preliminary 2026–27 budget showing projected revenue of $235,000,000 and expenditures of $249,000,000, leaving the district with a multimillion‑dollar gap that administrators said they will manage with targeted holdbacks and existing fund balance.

Cindy Sullivan, who presented the finance report and the preliminary budget, said general property‑tax collections currently sit at 97.34% and that changes in the state funding formula and debt‑service accounting are the primary drivers of the year‑over‑year revenue decrease. "This is a big decrease as it stacks up from year to year over what the state funding shortfall is," Sullivan said, noting that DESE has indicated a state adequacy target recommendation of 6,742 for planning purposes.

Why it matters: the budget affects staffing, programs and classroom services. Sullivan and board members discussed options for limiting the impact on students, including asking budget managers to hold discretionary spending until the district has updated state funding figures in the fall and relying on fund balance in the short term.

Details administrators cited include: a projected revenue decline largely tied to the payoff of bond refunding that reduced this year's reported revenue; a $69 million reduction tied to debt‑service accounting; a projected operating expenditure increase tied to salary step movement and new hires; and programmatic adjustments intended to align prices and reduce operating subsidies for nutrition services and KidZone. Sullivan said operating projections show a $7.4 million deficit this year, a $5.2 million operating deficit next year, and declining deficits thereafter under the current assumptions.

Superintendent and board members discussed the district's plan for monitoring and responding to the shortfall. Sullivan described a two‑part approach: (1) ask budget managers to prioritize "needs" over "wants" and withhold discretionary spending if warranted, and (2) use the district's fund balance to smooth operations, noting the district expects a fund‑balance target around 20% (potentially rising to ~22% when unspent funds return).

The board also reviewed the compensation recommendation (see separate action) and heard that the estimated cost to fund salary schedules and extra days for 2027 is $2,074,428; Sullivan noted that figure does not include employer retirement‑contribution costs. Board members asked clarifying questions about where flexibility exists in the budget; Sullivan identified supplies and services as the primary areas with discretionary flexibility.

Next steps: administration will return a final budget for board consideration in June, provide a one‑page summary of any changes between the draft and final documents, and continue to update the board as DESE releases additional guidance on the state funding formula.