PHM board hears 2027 budget preview as administration urges cautious use of reserves

Penn-Harris-Madison administrators presented an informational preview of the 2027 budget at a board work session, saying no board action was required that night and announcing an August 10 public hearing and a planned adoption vote on Sept. 14.

Chief Financial Officer Zach Wyatt told trustees that ADM-based state tuition support drives roughly 68% of district revenue while the property-tax levy supports operations and debt. "When we set the budget, our primary objective is really we wanna make sure that we are authorized to collect the levy and state dollars available to us to support the excellence in PHM schools," Wyatt said, adding the budget is designed to preserve flexibility as certified counts and assessed values are finalized.

Wyatt outlined recent revenue pressures: a roughly flat 10-year enrollment trend, a pause in federal ESSER dollars and a state change that rolled curriculum materials into the education fund. He said those factors mean the district will likely draw reserves in 2027 but stressed the district's long-term fiscal posture. "We built that cash reserve. We are starting to utilize it, but that's part of the reason it's there," Wyatt said. He told the board S&P affirmed a AA- rating but that management, service and budgeting discipline will be important to maintain it.

Board members asked for added clarity on projected reserve balances under the proposed 2027 plan and for scenarios showing 2028–29 impacts. Wyatt said final appropriations and the certified assessed value (the Form 1782 notice) will be available late fall, and the administration will return with recommendations. "We will be bringing some ideas and thoughts to you around those in the near future," he said.

The board adopted the meeting agenda at the start of the session and adjourned after the presentation. No formal budget votes occurred that night.