School board approves budget amid shifting education funding landscape

The Houston R-1 School District board of education unanimously approved a budget for fiscal year 2026, bracing for state funding shifts, rising costs and potential revisions as public education faces continued financial uncertainty.

FISCAL YEAR 2026 BUDGET

The board on Tuesday unanimously approved its fiscal year 2026 budget ahead of the state-required June 30 deadline. The district will revisit the budget in the fall and spring through amendments, given ongoing state-level discussions about changing school funding formulas and fluctuating revenue streams.

The total estimated revenue stands at $14.643 million. Revenue sources include about 43% from the state, 40% from local and county contributions, and 17% federal. A tax rate hearing is planned for August. Earnings on district investments are expected to decline alongside interest rates, and Dr. Justin Copley, superintendent, cautioned that grants requiring local matching funds will be reviewed carefully. A prepayment of $420,000 to $450,000 for debt service is also projected.

On the expenditure side, staffing continues to represent the largest portion of the budget — about 70% — covering salaries, wages and benefits. While the certified salary schedule remains unchanged, the district anticipates fluctuation in Early Childhood Center staffing and noted that insurance rates have doubled over the past five years. Classified salaries have an estimated $216,338 increase due to adjustments to align with labor regulations, including an eventual $15 per hour minimum wage. Changes to administrative pay were made using a tiered system, mirroring the certified staff model except for the superintendent, whose contract is negotiated separately.

Although a 9% increase is the recommended budget increase for insurance, a 12% increase is more likely, said Copley. The total expenditure estimate is $14.884 million, a 5.6% increase, and is expected to reduce the operating fund balance by about 1.61% over the course of the fiscal year. The district projects a 25% fund balance by year’s end and expects a continued decline in student enrollment. 

The board approved five budget-related motions: adoption of the recommended fiscal year 2026 budget, setting fiscal year 2025 as the final actuals for the year, a transfer from general to teacher funds of no less than zero, potential future transfers from general to capital projects (though none were made at this time) and authorization of remaining fiscal year 2025 obligations to close out the fiscal year. All motions passed without opposition.

PRTC RENOVATIONS

Terris Cates, senior project manager with Bartlett & West in Rolla, presented an update on the Piney River Technical Center (PRTC) renovation project, which includes a total estimated cost of $694,617 with a 15% contingency. The project will improve the layout of the building on Spruce Street as well as provide some improvements. The district has submitted a request to Missouri Department of Elementary and Secondary Education (DESE) for an extension beyond the current Sept. 30 deadline, which was previously extended from June 30. The plan is to go out to bid with 75% of the project scope ready by around July 8, with mechanical, electrical and plumbing (MEP) plans expected by July 18. Architectural design costs are estimated at $8,626, with $2,000 allocated for structural design. The board approved a $400,000 Career and Technical Education (CTE) Limited Access Grant through DESE with a 25% match in January. Darren Ice, board member, expressed frustration with the pace of progress.

OTHER MATTERS

• Building handbooks were approved with minor changes related to attendance policies and bell schedules. 
• A 30-minute lesson plan from Learn Life Savers on organ, eye and tissue donation was approved to be part of the high school health curriculum. 
• Adult breakfast and lunch rates were set at $2.80 and $4.50, respectively, for the 2025-’26 school year. The current rates are $2.75 and $3.54. The district is under the state’s recommended minimum amount – a difference which is supplemented with local moneys. 
• The district curriculum and Chromebook handbook were presented. The district’s Career Ladder Plan was approved. The plan has an emphasis on student tutoring for the 2025-’26 school year. 
• Amanda Munson, high school principal, stated that there will be an acute focus on improving attendance in the 2025-’26 school year. 
• Release of assessment data has been delayed to July 7. 
• Charlie Malam, Missouri School Boards’ Association (MSBA) delegate, announced that Shelly Mantel, of Mountain View, is the new MSBA president. 
• Copley stated that a building trades trailer has arrived on campus, work continues on the new athletic training facility north of Tiger Fieldhouse in an existing building and repairs to the Big Red, and that summer school appears to have increased enrollment compared to last year.
• MSBA policy updates pertaining to professional staff compensation modifying minimum teacher salary and suicide awareness were mentioned. 

Board member Tressie Neugebauer was absent from the meeting. The next meeting is at 5:30 p.m. Tuesday, July 8 in the high school library.