Superintendent outlines $64M 2026–27 budget plan as reserves fall below $8M

Mr. Evangelist, Superintendent, and Mrs. Jones, Assistant Superintendent for Business, presented the District’s preliminary 2026–27 budget development plan and timeline, telling the Board that the projected base budget is $64 million — a 3.7% increase over 2025–26 — driven largely by instructional costs that have risen about 7.6% and higher employee benefit expenses. The administration reported that the 2024–25 budget closed with a $1.3 million draw on reserves, the 2025–26 budget is projected to run a $3 million deficit offset this year by reserves and a tax levy increase, and that reserves have declined from roughly $14 million to under $8 million over the past five years.

Administration said state aid growth is weaker than in prior years: Foundation Aid is projected to increase by $393,000 (about 1.3%), lower than last year’s 2.12% increase. Given the revenue outlook and expense drivers, administration described short-term strategies including temporary spending freezes, targeted expense reductions, reviewing salaries and staffing, shifting bus purchases to a borrowing model to reduce near-term transportation spending, and continued strategic use of reserves to smooth cash flow while pursuing a sustainable fiscal outlook.

The board was given a timeline of next steps: a budget committee meeting on March 24, a board budget workshop targeting adoption at the April 21 meeting, a public hearing on May 12, and the budget vote on May 19. Board members including Mr. Mitchell and Mr. Petrie praised the Budget Committee and administration for transparency, while noting the difficulty of recommending program or staffing cuts to employees. The administration reported a fiscal stress score of 26.7%, describing the District as susceptible to fiscal stress and noting that advisors are being consulted to address cash flow and stability.