Francis Howell board adopts 2026–27 budget with $4.9M projected operating deficit
June 19, 2026 | Francis Howell R-III, School Districts, Missouri
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The Francis Howell board adopted the district’s FY 2026–27 budget on June 18 after finance staff presented a condensed review that highlighted a projected operating revenue of $257,691,005 and expenditures of $262,656,022, creating an immediate operating gap of roughly $4.9 million.
Finance staff said the deficit stems primarily from decreased state funding (administration used a conservative state adequacy target in projections), rising insurance and other operational costs, and prior commitments to staff raises. The projection puts the district’s fund balance on a downward trajectory; administration estimated an ending fund balance around 23.07% of expenditures by June 30, 2027 if no other actions occur.
Administrators noted that the proposed Proposition O (a 12.5‑cent transfer from the debt service levy into operating) would not take effect until the 2027–28 fiscal year and would be expected to add roughly $5.5 million to operating revenues when realized. They stressed that the transfer is presented as a net no tax‑rate change but that assessed-value changes will still affect individual taxpayer bills.
Board members asked how the district would respond if both ballot measures fail; finance and HR leaders said the most likely pressure points would be salaries and benefits because staffing comprises approximately 80% of the budget. Administration described possible responses including hiring freezes, reductions in positions, salary or benefit adjustments, or service reductions depending on the magnitude of shortfalls.
The board approved the budget by voice vote, meeting the statutory requirement to adopt a budget before July 1. Finance staff said it will continue to monitor monthly results and present formal budget amendments as needed.
Ending: Administrators will continue monthly financial updates; proposed levy and bond measures are intended to reduce reliance on one-time mitigation and stabilize ongoing operations if voters approve them.
Finance staff said the deficit stems primarily from decreased state funding (administration used a conservative state adequacy target in projections), rising insurance and other operational costs, and prior commitments to staff raises. The projection puts the district’s fund balance on a downward trajectory; administration estimated an ending fund balance around 23.07% of expenditures by June 30, 2027 if no other actions occur.
Administrators noted that the proposed Proposition O (a 12.5‑cent transfer from the debt service levy into operating) would not take effect until the 2027–28 fiscal year and would be expected to add roughly $5.5 million to operating revenues when realized. They stressed that the transfer is presented as a net no tax‑rate change but that assessed-value changes will still affect individual taxpayer bills.
Board members asked how the district would respond if both ballot measures fail; finance and HR leaders said the most likely pressure points would be salaries and benefits because staffing comprises approximately 80% of the budget. Administration described possible responses including hiring freezes, reductions in positions, salary or benefit adjustments, or service reductions depending on the magnitude of shortfalls.
The board approved the budget by voice vote, meeting the statutory requirement to adopt a budget before July 1. Finance staff said it will continue to monitor monthly results and present formal budget amendments as needed.
Ending: Administrators will continue monthly financial updates; proposed levy and bond measures are intended to reduce reliance on one-time mitigation and stabilize ongoing operations if voters approve them.
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