Superintendent Nick Markarian presented an overview of the district’s preliminary budget, highlighting a $6 million gap between expenses and revenue, which was slightly alleviated to $5 million through initial adjustments. The district faces a 3% reduction in state aid, equating to a $364,000 loss, compounding the budgetary strain. To address this shortfall, the board is considering a tax levy increase above the usual 2% cap, while also implementing cuts in staffing and other expenses.

The primary driver of the budget deficit is an anticipated $4 million increase in health benefits costs, a consequence of legislative changes under Chapter 44, which links employee contributions to salaries rather than health expenses. This has limited the board’s flexibility in managing healthcare costs, as negotiations with employee unions on health plan designs are postponed until 2027.

Rising operational costs, particularly a projected 16.72% increase in electricity expenses due to significant wholesale price hikes, add to the fiscal pressure. Custodial services are also expected to cost 15% more following a union settlement. Despite these challenges, the district aims to utilize reserves and strategic cuts to mitigate the impact on educational programs.

Board members expressed deep concern over the necessity of budget cuts and tax increases, acknowledging the difficulty of maintaining educational quality while addressing financial constraints. They emphasized the importance of minimizing the impact on students and educational programs, with particular attention to maintaining manageable class sizes despite potential staff reductions.

Public comments highlighted community concerns over the district’s financial management and resource allocation. One speaker questioned the necessity of maintaining current staffing levels given a decline in student enrollment. Board members responded by emphasizing transparency in the budget process and the prioritization of student competencies, assuring the public that staff cuts would be a last resort.

The board also discussed the potential use of capital reserves and ROD grants for essential projects, noting that while approximately $11 million is available in reserves, $31 million in projects are outlined, limiting the funds’ availability for addressing the current budget shortfall. The district’s existing debt service schedule and capital project needs further complicate financial planning.

Further complicating the budget situation is a proposed tax levy increase of 3.97% to counteract the fiscal challenges. This move, while necessary, is tempered by a 3% decrease in state aid, which poses additional hurdles. The district plans to leverage maintenance and emergency reserves to address various projects and challenges, although concerns remain about the potential need for further cuts in the upcoming year.

In addition to budget discussions, the meeting touched on wellness programs and the district’s use of external consultants. Some public commenters questioned the expenditure on outside groups like Joy Roots, advocating for reliance on in-house talent for professional development and wellness initiatives. The board acknowledged these concerns, clarifying that the consultant was already contracted for the year and reiterating their commitment to training teachers to lead future sessions.