Chief Financial Officer Michelle Scott and Lead Fiscal Accountant Cindy Klemz presented information on the proposed budget at a school board work session on Aug. 11, 2025. The board of directors will vote on the 2025-26 budget at their meeting on Aug. 25, 2025. Get meeting information.
The district faces significant budget challenges due to the loss of the local levy for educational programs and operations. This loss represents a $38.3 million funding gap over two school years.
For the 2025-26 school year, this loss requires a $14 million reduction in staffing and operating costs, including the elimination of 116 full-time equivalent positions. While efforts were made to minimize the impact of the cuts on students, these reductions will still result in changes across the district. The district will also need to use $5.2 million from its fund balance to cover the shortfall.
Four-year projections show that without an educational programs and operations levy, the district will have a negative ending fund balance unless expenditures are reduced by another $20 million or more in the 2026-27 school year.
Additional challenges include:
Unfunded mandates: There is a $5 million gap in special education funding and a $2.5 million shortfall for substitute costs. New state taxes on fuel and services will add another $300,000-$500,000 in costs.
Funding lag: State and federal funding increases are not keeping pace with the rising costs of salaries, materials and operations, requiring the use of an additional $9.7 million from the fund balance.
Read the full budget update and view the draft F-195 report required by the state.