University City board approves amended budget; administration warns of $2.3 million shortfall and discusses a 2027 tax measure

The University City Board of Education on Monday approved an amended fiscal‑year 2025–26 budget and a preliminary budget for 2026–27 after a detailed presentation from district finance staff projecting a roughly $2.3 million operating deficit.

At a board meeting, the district finance presenter (S15) told trustees that nearly 80% of the district’s revenue comes from local sources, primarily property taxes, with about 13% from the state and 5% from federal programs. “We are predicting a deficit of about $2,300,000,” the presenter said, noting that the projection is before any underspending and would reduce the district’s fund balance below previous levels.

The presentation reviewed capital and bond activity: voters approved a $65 million bond in April 2024, $30 million of which has been sold so far; the presenter said the district expects to sell the remaining proceeds later in the fiscal year. The presenter also outlined operating pressures including salary and benefit increases (a projected 3.5% for staff, 3% for benefits), the effect of a senior property‑tax freeze estimated at about $400,000, and a state foundation formula tweak expected to reduce revenue by about $110,000.

Board discussion focused on two central options to address the outlook: deep budget cuts that would likely affect students, or pursuing additional local revenue. “That leaves us with two choices — deep budget cuts, or a tax increase,” the presenter said, adding the administration views April 2027 as the earliest appropriate date to place a measure before voters and that any amount would be driven by continued community engagement.

After the presentation the board was asked to amend the current year budget and certify a preliminary 2026‑27 budget. A motion to approve the amended and preliminary budgets was made, seconded and passed by voice vote; the board did not record a roll‑call tally on the record.

Why it matters: The district projects declining reserves if trends continue, and trustees heard that delaying action will limit options. Administration and trustees emphasized that any tax proposal would follow further community outreach and would not be finalized at this meeting.

Next steps: The board will receive more detailed reports from the facilities and planning committee and continue community engagement on revenue options; staff said they will return with further analysis and public outreach plans before any ballot decision.