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ISD 318 board adopts fiscal 2027 budget after discussion of levy timing and OPEB adjustments
Summary
Board approved the district's FY2027 budget; administrators said headline figures showed a $3.54 million deficit but timing of levy/OPEB revenue and a fund-balance replenishment reduce the operational deficit to about $138,000. Trustees asked questions about health-care cost increases and fund-balance use.
Alex (finance presenter) asked the ISD 318 board to approve the proposed fiscal 2027 budget. He reported total revenues of just over $68,000,000 and total expenditures of $71,500,000, giving a headline deficit of $3,538,000. Alex explained timing and levy mechanics that shift some revenue between fiscal years, noting $33,400,000 in OPEB levies that will be realized across fiscal years and asserting that when timing items are netted the general-fund deficit would be closer to $138,000.
Alex described a $300,000 fund-balance replenishment line item and said the district has seen a steady increase in costs (including a projected 15.5% increase in health-insurance costs for FY27). He repeated that salaries, benefits and special education account for the majority of expenditures and said inflation and rising health-care costs forced adjustments to planned purchases and staffing assumptions.
Board members asked clarifying questions about the size and purpose of the fund-balance line item, the district's levy timeline and options for communicating budget sources to the community. Trustees thanked staff for pivoting after legislative changes that affected compensatory funding and acknowledged the challenge of balancing cash-flow timing with policy goals.
On a motion (moved by David; seconded by Mark) and a unanimous roll-call vote, the board approved the FY27 budget as presented. The adopted budget will guide staffing, purchasing and levy reconciliation for the coming fiscal year; administration said it will continue to monitor and report on levy receipts and fund-balance adjustments.
