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Midstate board adopts FY27 budget, approves classroom upgrades and authorizes up to $6 million notes
Summary
The Midstate Technical College District Board on June 15 adopted the FY27 budget, approved a multi-year classroom technology upgrade for roughly 81 classrooms, and authorized issuance of not-to-exceed $6 million promissory notes to finance FY27 capital needs; the note sale is scheduled the morning of July 13.
The Midstate Technical College District Board unanimously adopted the FY27 budget on June 15 and approved two related capital financing actions to support classroom technology and other FY27 projects.
The board approved the FY27 budget resolution presented on page 33 of the board packet following a finance and infrastructure committee review. The committee reported year-to-date financials through May showing $53.6 million in revenues (about 91.9% of the annual budget) and expenditures of $58.1 million (about 84.6% of budget). Fund equity was reported at approximately $28.6 million and cash and investments at about $24.6 million.
The board also approved a resolution to proceed with a districtwide classroom technology upgrade described on page 39. Committee discussion identified an approximate per-classroom upgrade cost of about $27,000 across roughly 81 classrooms; the work will be financed through Harland Business Systems over a five-year term and the capital budget includes the first payment.
Board members then approved a resolution authorizing the issuance of not-to-exceed $6 million general obligation promissory notes (series 2026B) to fund movable equipment and building remodeling and improvements. Legal and financial services for the issuance were noted as being provided by outside advisors. Staff said the budget assumes a 5% interest rate for planning purposes but that the actual rate will be determined at sale; the sale of the notes is scheduled for the morning of the July 13 board meeting.
Although board members voted in favor during roll calls, staff emphasized the timing and market-dependence of the final interest rate. The board signaled that proceeds will be used for the classroom upgrades and other FY27 capital expenditures already included in the capital plan.
Next steps: staff will finalize the bond sale results on July 13 and implement the classroom upgrade contract terms and financing schedule as approved by the board.
