District presents balanced preliminary 2026–27 budget but flags tight finances and special-education reimbursement uncertainty

District finance leadership presented the first draft of the 2026–27 operating budget to the board, describing a year‑long process of projections, staffing allocation and contingency planning.

The presenter said the operating budget in the proposal increases about 1.87% and that nearly 78% of the operating budget is personnel-related costs. He noted health‑insurance trends of 8–12% and that collective-bargaining CPI sits at about 2.63%, creating pressure on available resources. The district's general fund balance was reported at about $10,660,000 at the end of fiscal 24–25 and is projected to remain roughly at that level in the preliminary budget. The presenter said revenue drivers include about $3.9 million in open‑enrollment tuition revenue and that the revenue limit plus state aid generated about $425,000 in allowed revenue increase in the draft.

A key uncertainty is special‑education reimbursement: the presenter said actual reimbursement this year is nearer 38.5% (below a 42% assumption) and that projections for the next year look like 39–39.5%, but that a move to 45% at the state level could mean roughly $300,000 more for district spending capacity. Staff outlined reserve funds and contingencies: capital funds (fund 46 projected at about $1.1 million; fund 41 about $80,000) and said the board will adopt a preliminary budget on May 18 and set the final levy in October after state aid certification and the 3rd‑Friday pupil count.

Board members asked about flexibility for unforeseen costs, classroom and section reductions given declining enrollment, youth-apprenticeship growth and how enrollment projections affect staffing. Staff described planned section reductions, one administrator reduction, and the use of operating reserves and capital funds for contingencies.