Lake County School Board approves preliminary FY2027 budget amid audit and staffing concerns

The Lake County School Board approved a preliminary fiscal year 2027 budget during its May 7 meeting after a detailed review of revenue projections, audit follow-ups and staffing costs.

Chair opened the meeting and moved approval of the draft budget after floor discussion. A staff member who led the budget review warned the board that the updated draft shows a positive difference of about $330,000 but repeated several times that the additional revenue is not guaranteed. "This is an estimate. It's a draft," the Chair quoted the staff member saying when relaying guidance from the state fiscal contact.

The discussion focused on several cost lines and process issues. A committee member asked why the teacher retirement line fell from $199,000 in FY25 to $190,000 in the draft; staff explained retirement contributions vary by state-set percentages and by employee service time and coding. Staff also said many materials, professional development and some special-education costs are paid from federal funds rather than the local general fund.

Board members pressed staff about contracted services and legal fees. Staff cited prior one-time expenditures to reconcile past accounting issues and to contract consultants; the board was told earlier work with consultants and contracted services (including a cleanup by outside finance contractors) brought the ledger current through March. The staff described FY25 audit findings that remain on the record — reconciliations and segregation of duties — and said auditors had moved approximately $2,000,000 in the material-audit adjustment while the district completed reconciliation work.

Members raised personnel risk. "Come July, unfortunately, there will be a teacher who will go, 'I'm not coming back,'" the staff member told the board, stressing that departures or hires with different benefit elections could shift insurance and salary costs and change the budget math.

After discussion, a motion to approve the draft FY27 budget was made (moved by Vivian; seconded by Diane). The board proceeded to a roll-call vote. Board members Kane, Ophren, Cook, Ollivin, Umrah, Jones, Neil, Snyder and Windsor each voted yes, and the motion carried.

The board and staff agreed the draft budget will remain flexible: staff said they would avoid committing the projected, unconfirmed revenue until it is realized and recommended making adjustments during the fiscal year as actual receipts are confirmed.

Votes at a glance: The board approved the May 7 agenda earlier in the meeting (motion announced as made by Jody and seconded by Judy) and approved a request for an overnight field trip for the Lara Kendall FFA group to a program led by MTSU at Camp Limits; both motions were carried as announced during the meeting.

The board expected to revisit line-item allocations and amendments if revenue updates change projections; no further formal deadlines were announced during the meeting.