Jefferson City board adopts $163.8 million FY2027 budget and raises starting teacher pay

The Jefferson City School Board on Tuesday approved the district's fiscal‑year 2027 budget, adopting a plan that projects $159.9 million in revenues and $163.8 million in expenditures and includes an increase in starting teacher pay to $46,650.

Sherry LePage, who presented the budget, said the district expects a modest surplus for current operations in FY27 of about $300,000 but projects deficits of roughly $740,000 in FY28 and $3.5 million in FY29, largely because bond‑funded capital expenses are recorded in the later fiscal years. "Current projections budget for a surplus of almost $300,000 for current operations in fiscal year '27," LePage said during her presentation.

The budget proposal recommends a one‑step move and an additional 3,350 to the teacher pay base, which LePage said "is going to move the starting teacher salary to 46,650. This equates to a $4,079 raise for teachers, the largest increase in 18 years." Other classifications not on schedules would receive a 7% increase and starting hourly pay for custodians, paraprofessionals, secretaries and food service staff would rise by $1.25 plus one step on their schedules.

LePage said salaries and benefits make up the majority of the budget — about 64% of total expenditures and roughly 77% when capital and debt service are excluded — and that total salary expenses will increase by about $5.4 million under the plan. The budget also funds capital projects, with roughly $11.1 million anticipated for FY27 and a planned $2 million transfer into the capital projects fund to support ongoing facility work.

On revenue side, LePage told the board that property taxes remain the largest single source, followed by state and federal funding, county receipts and Prop C (the one‑cent sales tax). She noted that assessed valuation figures from counties are not final until late July and that the district used current levy figures to prepare the draft budget; adjustments could be made in August or September if assessed values change.

LePage warned the board the district faces headwinds from state funding. Because the foundation formula is not fully funded at the state level, the district expects an estimated $2.4 million shortfall for FY27 tied to the state adequacy target (DESE figures cited in the presentation). LePage urged vigilance on state policy changes that could further reduce revenues.

The board unanimously moved and seconded the motion to adopt the budget. Members thanked LePage for the work; one member said Jefferson City is in a comparatively strong position because of the district's fund balances.

The budget adoption sets local spending and authorizes staff to make the adjustments required by final assessed valuations later this summer.