The Fayette R-III school board granted unanimous approval of a proposed $11.46 million budget for fiscal year 2027 and increased lunch prices during  its regular monthly meeting held last Wednesday, June 17.

The budget projects total revenue of $11,461,383 and expenditures of $11,558,530, resulting in a planned net deficit of $97,147. That compares to the FY2026 budget’s near break-even position of around $25,000 in the black.

“That is cutting it close between revenue and expenses,” said Superintendent Brent Doolin.

Revenue is budgeted to increase by $1,783,686 over the next year, while expenditures are set to rise by $1,867,409.

The district had been planning to deficit spend, as its fund balance is expected to end above 50% for the fiscal year that concludes June 30, and is anticipated to drop to 46.81% by this time next year.

“While that is not fun news to report, I do believe we are in the position where we can afford to eat into that fund balance percentage just a little bit in order to not cut programs or teachers or services or any other thing that we’ve got going on right now,” Doolin said. He also noted in his introduction to the budget that a major focus was simplifying the certified staff scheduled to make it easier to understand and more supportive of staff advancement. “We worked to hold non-salary and benefit expenses to an increase of 3% or less whenever possible. The result is a balanced approach that supports students today while planning responsibly for tomorrow.”

Even with planned deficit spending, the district could remain in the black in the unlikely event that the state fully funds its foundation formula. However, Doolin said he prepared the budget with a conservative approach, using a State Adequacy Target assumption of less than full funding. Full funding by the state would increase the financial outlook for the fiscal year by more than a quarter-million dollars.

Local revenue sources are projected at $5,058,827. State aid is budgeted at $3,059,929, federal funds at $813,628 and other revenue at just over $2 million. The tax levy remains unchanged at $4.9962 per $100 of assessed valuation, with $4 allocated to the General Fund, 77.62 cents to Debt Service and 22 cents to Capital Projects.

The largest expenditure increase is in capital outlay, which jumps to $2,428,174 from $589,369 in the FY2026 budget. Certified salaries are budgeted at $3,895,329, an increase of $142,540. Non-certified salaries are set at $1,104,500, down slightly from the current year. Benefits total $1,478,076.

The new budget comes as the district addresses recovery from flooding that damaged facilities at the elementary and middle schools. Supt. Doolin said repairs should be finished by mid-July.

The board also gave unanimous approval to increase lunch prices by 10 cents, as required by the Department of Elementary and Secondary Education. Students will now pay $2.95 for lunch. Adult prices increase to $3.95. Breakfast prices remain unchanged from last year.

The Board of Education meets regularly at 6:30 p.m. in the high school library on the third Wednesday of every month except for July. The next meeting is scheduled for August 19. Meetings are open and the public is invited.