Longview board hears preliminary 2026–27 budget showing small surplus, categorical cuts and service pressures

Longview School District staff presented a preliminary 2026–27 budget on June 22, showing anticipated revenues of approximately $127,959,28 and expenditures of $127,85,253 — a projected surplus of about $10,000 — but multiple areas of concern that could affect services and staffing.

At the meeting, the district finance lead said the enrollment projection used for the prototypical funding model is about 6,239 full-time-equivalent students, roughly 20 FTE below prior estimates. ‘‘Student enrollment is our largest revenue driver,’’ the presenter said, noting that state prototypical funding does not fully cover local staffing levels and that local levy dollars remain necessary to close gaps.

Staff highlighted several revenue pressures: anticipated decreases in federal categorical allocations (Title I down about $22,000, Title II/IV combined down roughly $27,000, Title III down about $2,000) and a substantial reduction in Learning Assistance Program (LAP) high-poverty funding for two buildings, Robert Gray and Mark Morris, producing an estimated combined impact of about $430,000. ‘‘Robert Gray received LAP funding this year by a margin of one student; Mark Morris had qualified the prior two years and now no longer meets the threshold,’’ the presenter said.

On the expenditure side, personnel costs make up roughly 83% of the budget; staff said they applied projected inflationary salary and benefits adjustments (2.6% IPD and a roughly 5.13% rise in benefits). District staff also built in a not-to-exceed insurance renewal increase of about 15% for 2026–27 and flagged a city utility tax increase the district received notice of this spring: a 21.5% adjustment the city applied to utility customers starting in May. Those cost increases will be reflected in MSOC (materials, supplies, operating costs) planning.

The presentation noted that the state adjusted levy equalization in the last legislative session (the per-pupil increase in the formula was reduced relative to prior expectations), and that local levy estimates in the plan assume 5% assessed-value growth. Staff emphasized that final assessed values and some categorical allocations will not be certain until later in the year.

The board asked clarifying questions about impacts to transportation, depreciation schedules for vehicles, and how principals and central office leadership collaborated on plans where categorical positions were tied to funding. Staff said they had worked with building principals and employee groups over several months to prepare for reductions where necessary.

Next steps: staff will publish a draft budget for public review by July 10, provide a board update on July 13 with a four-year forecast, hold a public hearing on August 10, and plan for final budget adoption on August 24 to meet statutory deadlines.

Why it matters: even with a small reported surplus in this preliminary projection, the district faces near-term funding volatility — falling categorical dollars for some schools, higher operating costs, and enrollment shifts — that could require program adjustments or constrained staffing decisions during final budget development.