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Lake Forest board reviews proposed FY2027 tax rates, plans vote at June meeting
Summary
District officials presented a proposed FY2027 tax rate that assumes execution of the referendum year‑two increase and a 2.861 overall rate; the board scheduled a formal vote for June 11 and heard estimated homeowner impacts and state funding uncertainties.
The Lake Forest Board of Education reviewed a proposal for fiscal year 2027 tax rates at its May 28 meeting, with officials recommending the district execute the year‑two increase from a previously approved referendum and taking no final action until a June 11 vote.
During a 40‑minute presentation, the district’s budget presenter (identified in the meeting as Mr. Helmet) told trustees that property assessments rose about 1.4% year‑over‑year while tax collections through 11 months had grown roughly 2.6%. He said the FY26 final budget reflects a $600,000 deficit and that new pay provisions in the Lake Forest Education Association contract will add more than $500,000 in recurring salary expenses for FY27.
“As part of this plan we are assuming execution of the second‑year referendum increase,” Mr. Helmet said, estimating that increase at about 1.5 cents per $100 of assessed value and framing it as the primary driver of the proposed overall increase.
The presenter reviewed external risks, including proposed changes to the state equalization formula. He said a Department of Education study showed models that could reduce Lake Forest’s funding and noted a one‑time $100 million allocation approved by the Joint Finance Committee to support a new hybrid funding formula proposed for FY28. The district, he said, has been told the current formula will be frozen for FY27 but cautioned there are no guarantees.
Officials also described debt service and local match components. The presentation listed next year’s debt service payments at $344,000 and estimated a debt service reserve near $170,000 (about 47% of next year’s costs), beneath some audit recommendations. The budget team proposed lowering certain local match taxes (minor capital and opportunity match) because state grant growth has created flexibility in the near term.
Taken together, the presenter proposed an overall tax rate of 2.861 and estimated the average assessment in the district at $242,000, producing an average annual school tax increase of about $40 (roughly $37 for the typical residential assessment).
Trustees did not vote on rates; the presenter said the board will vote on the tax warrant and formal rate at its June 11 meeting to submit to Kent County and auditors. The proposal will appear on the June agenda for a final determination.
