Merton Community School District finance committee previews preliminary 2026-27 budget, estimates 3.39% levy

At its May 11 finance committee meeting, the Merton Community School District presented a preliminary 2026-27 budget that assumes about $185,000 less in state aid and an estimated revenue limit of roughly $6.7 million, with an early tax-levy estimate of about 3.39%. Chair said the district will seek a preliminary budget recommendation to allow spending to begin July 1 for the 2026-27 school year.

The chair summarized the district's quarterly financials, saying, "revenues are looking really good," and noted the district has not yet claimed certain state grants and plans to draw them later in the year. He reported expenditures are tracking near expected midyear levels — approximately 50% — and explained teacher payroll timing (teachers are paid through August) affects that percentage.

Staffing and compensation remain the largest budgetary items: "We have all the compensation. The employee benefits and salaries are all taken care of for this upcoming year, which occupies almost 75% of our budget," the chair said. Salary increases are budgeted at 2.63% districtwide; when related benefit costs are included the total effect is roughly 3.4%. The chair flagged health insurance renewal on Jan. 1 as the district's largest remaining unknown for next-year costs.

The committee also discussed one-time facility projects that can be funded if transfers come in lower than expected. The chair said the special education transfer from Fund 10 to Fund 27 "will come in more than anticipated lower," allowing the district to include a roof replacement and fiber-optic work in this year's budget. The district has budgeted about $150,000 for a science materials adoption; staff are piloting materials and planning related professional development.

On student counts, the district built in a modest increase of about 10 students but noted roughly 18 students are open-enrolling out of the district; 14 of those were new residents who may not attend the district when the third-Friday attendance count is taken in September. "That's the big thing — how many students that we have on our revenue limit and then how many of those new students actually attend our school," the chair said, stressing the link between attendance and state aid calculations.

The chair told the committee he reduced the district's state-aid estimate during budget preparation. "I did lower our state aid by approximately a $140,000. Actually, I'm sorry. It's about a 185,000, less," he said, adding that any reduction in state aid is typically pushed onto the levy. He also said rising property values — the district's rough estimate was about a 10% increase — will spread the levy across more taxable value. Taken together, the revenue-limit estimate with levy is about $6,700,000, roughly $600,000 higher than last year.

A committee member who identified as a Village of Lisbon resident asked how recent reassessments that bring properties to 100% value would affect levy distribution. The chair replied that levy distribution varies across municipalities, noted prior assessments in the village and town of Merton and said ongoing residential growth in Lisbon and northern subdivisions will increase total property value coming into the district.

The chair said staff will consult auditors before making recommendations about Fund 46; a preliminary audit is scheduled for mid-June and the board must act on Fund 46 matters by the end of July. The committee was told the district plans to present a balanced preliminary budget and to use the early September annual meeting (the chair mentioned Sept. 9) to allow voters to provide feedback ahead of final levy actions.

The finance committee concluded with no formal motions or votes recorded at the meeting.