Salem board approves preliminary 2026-27 budget; defeasance option deferred

Colleen, the district—s director of business services, presented the preliminary 2026-27 budget and two levy scenarios: one with a defeasance payment added to Fund 39 and one without. The board voted to approve the preliminary budget as presented so staff could continue work on final figures and modeling.

Colleen said the district completed 25-26 without the recurring referendum revenue (a one-time $1.5 million ended) and projected a revenue-limit per-pupil increase of about $3.25. She warned that projected special-education reimbursement may come in lower than earlier planning (an estimated 35–38% versus an earlier assumption of about 42%) and that, under current assumptions, the 26-27 projection showed a potential negative $1.2 million deficit without additional adjustments.

On levy options, Colleen explained the two scenarios: with the defeasance included, the model showed a total revenue-limit levy where state aid covers about 49% and taxpayers 51%, producing a projected mill rate near 4.8; without the defeasance the mill rate would project near 4.12. "That defeasance falls into that 2.9 amount," she said, describing how the defeasance payment would flow through Fund 39.

Board members said they were not comfortable finalizing a defeasance decision without more forecasting and consideration of election-year timing. The board asked for continued monthly updates and a fuller forecast ahead of an August discussion; Colleen agreed to return updated figures and to share slide links and supporting materials.

The board then moved to approve the 26-27 preliminary budget "as presented," the motion was seconded and carried by voice vote. No final levy or defeasance decision was made at this meeting.

What comes next: administrators will provide updated forecasts and modeling, and the board expects further conversation in early August before any defeasance decision.