09:29A significant portion of the meeting was dedicated to a resolution for submitting an application for increased expenditures and tax levy incentive aid based on the fiscal year 2026 state budget. This move was driven by the district’s current financial struggles, exacerbated by a cumulative reduction in state aid totaling $8.4 million over the past five years due to the implementation of S-2. These financial constraints have forced the district to cut essential programs and services. The board is now seeking a $397,216 expenditure increase and $19,861 in tax levy incentive aid to help restore these cuts and bring the district closer to meeting state educational standards.

12:47A detailed financial presentation was provided, highlighting the district’s budget composition and challenges. Approximately 79.6% of the budget is allocated to salaries and benefits, with a projected salary increase of 3.1% for the upcoming year. Health insurance premiums have also seen a significant rise, with a 22% increase in the previous January and an additional 13.5% expected the following January. The board outlined other cost drivers, such as transportation for out-of-district special education students, including a notable expense of $72,000 for one wheelchair-bound student’s transportation.

22:56The district’s revenue has been further impacted by the end of federal ESSER funding, creating a $250,000 budget shortfall, and anticipated reductions in Title grants and Medicaid reimbursements. Changes in the Medicaid funding formula have led to a projected shortfall of $84,000. The board also faces state-imposed caps on aid increases, resulting in an owed amount of $530,000 in state aid that remains unpaid.

During the meeting, the board emphasized the district’s underfunding compared to state recommendations, with an adequacy gap exceeding $4 million. This shortfall has resulted in the potential cutting of nine positions across teaching, administrative, and support staff, along with reductions in professional development, tuition for homeless students, and custodial support. Legal obligations require the district to transport homeless students to their original schools or pay tuition to new schools, costing $21,000 to $22,000 per student annually.

30:45The board discussed a resolution to raise the tax rate from 3.62% to 5%, translating to an additional $166 per year for the average homeowner. This proposal aims to restore some of the cuts and address the unexpected enrollment of a child with severe disabilities requiring specialized education services costing $98,000. Without approval for additional funding, the district may face further position cuts.

The resolution was presented not as a definitive budget change but as an application to seek state permission to adjust the budget for unforeseen expenses. The state may not approve all requested increases. The board acknowledged the political implications, noting that the state legislature’s reluctance to raise taxes during an election year complicates securing necessary funding.

08:38Community member Mrs. Nancy Raleigh voiced concerns about the recent tax increases, referencing a previous board statement suggesting no further tax increases if certain measures were approved by the community. Raleigh expressed frustration, questioning why there had been two tax raises within six months and highlighting the financial burden on residents.

26:33In response to these concerns, the board reviewed the district’s tax levy history, showing periods without tax increases or cuts and emphasizing the average tax increase of 1.73% over 16 years. This was compared to a 43.7% increase in the Consumer Price Index during the same period.