Southeast Polk board sets FY27 budget hearings and flags state bills that could shrink district revenue

The Southeast Polk Community School District board voted to set public hearings on the fiscal year 2027 budget and on proposed construction-delivery models, while district finance staff warned that pending state legislation could cut certain local revenues.

Board member motions set public hearing B for the FY27 budget and scheduled hearings for CMAR (construction manager-at-risk) delivery models for both an elementary project and a junior-high secured-entrance project on April 9, 2026; the motions were seconded and approved by the board. A resolution authorizing advertisement for a bond sale, approving electronic bidding procedures and approving the official statement also cleared the board with no substantive discussion.

Kevin, the district's business services presenter, told the board that general-fund revenues are up about 4.4% year to date and that personnel costs are up about 5.4%, while utility costs are down roughly 6.2% through February. “We are up in revenues of 4.4%,” Kevin said as he reviewed the monthly financials, and he noted food-service meals served were down about 5% year to date, likely because fewer students are eating school lunches.

Kevin warned the board about several legislative proposals that could change district funding flows. He said recent state action (identified in materials as Senate File 2201) set a 2% SSA and that the state is moving funding that had been paid via property taxes into state aid, with about $42.2 million funneled to 199 districts. He also described a proposed cap on transportation-equity payments for districts receiving more than $1,000,000; the district's transportation-equity payment rose from roughly $127,000 last year to about $290,000 this year. “That is an unfunded cost for us,” Kevin said of some legislative changes, flagging the potential local budget impact.

Kevin reviewed the district's solvency ratio and cash-reserve levy options, saying the board should be prepared to consider adjustments as FY28 budget work begins. He projected the solvency ratio could fall below 9.6% at the end of FY26 and discussed aiming for a roughly 10% solvency ratio to protect bond ratings. Board members asked how changes in the solvency ratio might affect the district's bond rating; Kevin said solvency is only one of several factors bonding agencies review.

Votes at a glance: the board voted to adopt the meeting agenda, approved the consent agenda, approved the meeting schedule (including a March 26 special meeting and regular meetings on April 9 and April 23), approved the bond advertising/electronic bidding resolution, and set the public hearings for April 9. All motions recorded in the transcript were approved by voice vote with no recorded dissent.

What happens next: the district will hold the scheduled public hearings in late March and April on the FY27 budget and on the proposed CMAR delivery models; staff said they will continue to monitor proposed state legislation that could reduce specific revenue streams and will bring budget options back to the board as details and impacts become clearer.