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Administration reports modest FY26 surplus but warns of FY27 structural deficit
Summary
Finance staff said FY26 currently projects a surplus of about $330,475 after transfers and expected additional expenses; the superintendent warned FY27 begins with a structural shortfall (roughly $1.75 million) and urged caution about relying on fund balance to bridge gaps.
The district's finance office presented an updated FY26 financial snapshot showing revenue of $63,344,649.01 and expenses/encumbrances of roughly $62,573,523.60, leaving an initial surplus estimate that administration revised to about $330,474.70 after accounting for transfers and additional obligations.
The presentation emphasized that the positive variance is conditional: administration identified $1,663,650.71 in additional expected expenses and flagged approximately $42,000 of possible unforeseen costs before the fiscal year closes. The superintendent said that if the projected surplus is realized it could be used to support FY27, but cautioned that drawing on fund balance would increase the district's structural deficit heading into FY28.
Why it matters: committee members asked how much the surplus could vary before year end; administration answered conservatively and recommended not over‑relying on fund balance given an estimated structural shortfall of about $1.75 million for the following fiscal year. Members asked for continued updates and emphasized the need for earlier town‑level budget conversations in future cycles to reduce compressed decision timelines.
Next steps: administration will continue reconciling encumbrances, verify year‑end payroll and retirement payouts, and return with a final FY27 proposal that incorporates transportation and personnel decisions taken by the committee.
