School administration outlines FY27 pressures, proposes targeted reductions while seeking new revenue

School administrators briefed the Lincoln Budget Board on March 3 on the schools' projected FY27 spending pressures and capital needs, saying they will work with a recommended 3% operating increase while trying to limit direct impacts on students.

McNamara, a member of the school administration, told the board the district had already identified several targeted staffing cuts and would add 1.5 positions to meet rising pre-K special-education needs. "We're coming in with some staff reductions already in areas that we feel are appropriate and will not impact programs or kids very directly," McNamara said. He added the administration would continue to answer questions from the board and that a 3.75% increase originally requested would have been preferable but a 3% figure was workable.

Board members pressed administrators on revenue assumptions and timing. The transportation contract is expiring, and staff said they plan to issue an RFP within weeks with a typical bid window of three to four weeks so proposals can be considered before the town meeting submission deadline (30 days before the May town meeting). The administration said legal counsel will review the RFP template before release.

School staff briefed the board on benefits and other cost drivers. "We budgeted for 5% in health care," McNamara said, warning that trust recommendations could change that estimate. Members asked whether the budget should assume a $150,000 fund-balance transfer; administrators replied that using fund balance is a last resort. "It's never really a good idea to use fund balance," one administrator said, adding the district would prefer to avoid it but could use a modest amount if necessary.

Administrators also described several capital and facilities needs. They reported roughly 140+ heating valve shutoffs across school buildings that lack local shutoffs and will require significant, disruptive work to replace. On security, staff said many existing cameras are aging and some were purchased from manufacturers now flagged at the federal level. New multi-lens cameras can reduce wiring and overall cost; administrators characterized cameras as a high priority in light of recent incidents. "We would put the cameras at a high priority," McNamara said.

On athletics, staff said they reduced bleacher heights and reworked designs to fit the site and accessibility needs; they also discussed whether sponsorships for a new scoreboard would affect state building-aid reimbursements. Administrators cautioned that donations or grants tied to a capital project must be reported on housing- or building-aid forms and could be netted out of reimbursement calculations.

Next steps included issuing the transportation RFP, reviewing athletic equipment for possible capital classification, providing the budget board with a revolving-fund reconciliation document, and the capital subcommittee meeting Friday morning to refine priorities. The board approved the Feb. 26 minutes and closed the school presentation to move into municipal budget items.

The administration said it will return with requested backup and clarifications on timing, revenue assumptions and detailed cost breakdowns.