HILLSBORO R-III board approves 2026 budget amendment, moves millions into capital for HVAC and projects

The HILLSBORO R-III Board of Education on Nov. 6 approved Budget Amendment No. 2 for the 2026 fiscal year, moving an identified transfer to capital funds to support ongoing projects including a large HVAC investment.

Superintendent Dr. Isaacson and finance staff presented a three-year revenue-and-expenditure comparison, saying the district has realized roughly 21% of expected revenue and nearly 30% of planned expenditures at this point in the year because of summer capital work. The presentation noted year-to-date revenue is about $10,500 less than three years ago and that the district has recouped about $115,000 from other local education agencies for services such as juvenile-detention tuition.

The amendment package includes an anticipated $1.8 million transfer into capital and reflects a $2.5 million down payment for the high-school HVAC contract. Staff said net expenditures increased by roughly $1 million, largely to fund teacher salaries and benefits. Finance staff projected an ending unrestricted fund balance near 39% for the fiscal year after the transactions, above the district's strategic-plan target of 182%.

Board members asked clarifying questions before the motion to adopt the amendment passed with no opposition. "None opposed; motion carries," the presiding officer declared.

Votes at a glance (motions approved during the meeting):
- Approve agenda as amended: approved (no opposition).
- Consent agenda: approved (no items pulled, no opposition).
- Budget Amendment No. 2 (2026) including transfer to capital funds: approved (no opposition).
- Roofing bid (Shea Roofing) for primary sections C&D, $399,720: approved.
- Roofing bid (Barch Roofing) for junior-high section A1, $248,500: approved.
- Asphalt contract (Meyer) for 2026-27, $38,575.50 (approx.): approved.
- Perch three-year lease for 10 weight-room cameras, $14,000/year ($42,000 total): approved.
- Rocket Alumni Solutions two-year agreement (digital recognition platform): approved.
- Jefferson College early-college MOU addendum: approved (one abstention noted).
- MSBA full maintenance service contract (2026-27): approved.
- Policy revisions (2025 D), second reading: approved.
- Out-of-district tuition rates for FY2026 and FY2027 ($11,310 and $11,900): approved.
- Substitute half-day pay rate amendment (retroactive to 07/01/2020): approved.
- Approval of fall board workshop minutes (Nov. 6): approved (one abstention).

What it means: The board's actions lock in funding for the high-school HVAC project and other capital needs this year and preserve a reserve above the district's stated goal. Administrators said the capital strategy reduces future interest costs by placing a down payment on the HVAC contract and that staff will continue monitoring revenue and expenditures as the year advances.

Next steps: Staff will post updated financial documents on the district's financial summary page and proceed with previously approved contracts and capital procurements.