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Committee previews tentative budget: healthcare, transportation and special education flagged as top cost pressures
Summary
Finance staff presented early tentative-budget assumptions including a projected 20% healthcare increase, a 10% transportation increase for an upcoming bid, 2.5% COLA and an estimate that these drivers could push a preliminary budget increase to roughly 6–7% absent mitigations.
Finance staff presented an early preview of tentative-budget assumptions on Nov. 18, identifying healthcare, transportation and special-education tuition increases as the primary cost drivers likely to shape next year’s budget.
Director of finance Michelle told the committee the budget team is planning for a roughly 20% increase in healthcare costs based on preliminary broker feedback, and that transportation costs were being modeled with a 10% increase as the district prepares to go to bid. The district is assuming a 2.5% cost-of-living adjustment for union and non-union staff and estimated step increases for teachers and TAs at about $166,000 under a flat-staffing scenario.
The state Operational Services Division (OSD) guidance on tuition inflation was referenced as a 3.4% planning figure for out-of-district tuitions, though staff warned that actual special-education caseload changes could produce larger swings. Under the assumptions presented, staff estimated the total operating budget could rise roughly 6–7% compared with the current year if those drivers persist.
Michelle also reported that the district’s projected end-of-year (END) reserve is approximately $1.0 million, and combined reserves (stabilization plus END) are roughly $1.8–1.9 million. Committee members discussed the tradeoff between preserving reserves and avoiding personnel reductions; several members said they prefer to preserve instructional positions where possible and look for other mitigations.
The finance team said the tentative budget will be assembled and presented at the Dec. 2 meeting, with more detailed numbers to follow from principals and special-education staff. The committee recommended preparing public-facing FAQs to explain healthcare and collective-bargaining timing to residents.
