FY 2027 Budget Information

Welcome to the St. Johnsbury School District FY 2027 Budget Information Page!

This is a dedicated space to keep our community, families, and stakeholders informed about the development of the St. Johnsbury School District's FY 2027 budget. Transparency is vital to building trust, and we want you to have easy access to the most current and accurate information throughout this process.

In this document you will find up-to-date details on the budget draft, insights into key decisions, and regular updates on any revisions, meetings, and/or important milestones. We hope this resource will help clarify any questions you may have.

Additionally, we want to hear from you! We value your feedback and encourage community members and other stakeholders to share thoughts, ask questions, or provide suggestions about the budget draft. To submit feedback and engage directly with us in shaping the final budget, please connect with us using this dedicated online form.

Thank you for your continued support and partnership in ensuring that our district is well-resourced to support student success and community priorities. Together, we can make a difference!

Karen E. Conroy

Superintendent

St. Johnsbury School District

1216 Railroad Street, Suite C

St. Johnsbury, VT 05819

(802) 745-2791

The St. Johnsbury School District shared an update regarding the estimated FY2027 education tax rate. When first announced on January 12, the estimate was based on the December 1 state yield. Legislative discussions on a proposed $75 million statewide Education Fund buydown have prompted the district to use an updated yield of $9,212 to include the anticipated buydown. This results in a reduced estimated increase of $0.07, a $0.03 difference from the prior estimate. The district noted that this is still an estimate, assumes the buydown is adopted, and that final tax rates will be set later this spring. Updated estimates will be communicated as official guidance becomes available.

The Finance Committee met on Monday, January 12th, to evaluate the second draft of the FY2027 budget. This updated proposal incorporates several revisions designed to address stakeholder feedback and ensure fiscal transparency.

Key Budget Revisions

The committee focused on specific adjustments to align the budget with community expectations. These include:

• Controlled Increases: Targeted adjustments were made to reduce the proposed increase from the current year operating budget from over 6% to 5%.

• Structural Refinements: This district’s staffing structure and administrative roles were refined for increased efficiency.

• Strategic Funding: Strategic use of grants, capitol reserve, and anticipated surplus as revenue to reduce the impact on on taxpayers.

Financial Overview and Tax Impact

Superintendent Karen Conroy provided a presentation detailing the budget’s framework, suggested ballot language, and the estimated tax impact.

The FY2027 Budget Draft #2 proposes total expenditures of $31,830,266. This represents a 5.34% increase from the current fiscal year. Based on these figures, the estimated tax rate is projected at $1.17, which reflects a $0.10 (or 9.66%) tax rate increase.

The full Board is scheduled to meet again on Monday, January 19th at 6:00 PM. During this session, the Board will move to approve the final budget proposal before it is presented to voters for consideration in March. Stakeholder input is ongoing and the community is encouraged to share their feedback on the draft budget using the Connect With Us form on the district's website.

The Community Budget Forum was held on Wednesday, January 7th in the St. Johnsbury School Auditorium. A copy of the presentation can be found on the district's website along with a recording of the presentation. The Finance Committee will meet Monday, January 12th at 8:15am at the District Office and the full School Board will meet again on January 19th at 6:00pm to approve the FY2027 budget. Stakeholder input is ongoing and the community is encouraged to share their feedback on the draft budget using the Connect With Us form on the district's website.

The School Board met on Monday, January 5th and reviewed the district's budget and facilities needs. Karen Conroy presented a draft budget reflecting a 6.53% increase in total expenditures, driven by rising fixed costs and special education requirements. The board discussed an anticipated surplus from FY 2025, which could be used for facilities improvements or to offset taxes. Critical building maintenance needs totaling $396,000 for FY 2026 were discussed. Finance Director Jacob Wood explained the budget's revenue sources and tax impact, projecting an 12.22% increase in the homestead tax rate based on the current version of the budget as presented. The board agreed to hold a community budget forum on Wednesday, January 7th to gather feedback before making final decisions on the budget and surplus allocation.

The Finance Committee met on Thursday, December 18 to review the draft FY2027 budget and the preliminary tax rate presented by Superintendent Karen Conroy. The committee examined current budget projections, including staffing needs driven largely by special education and student support services, and discussed how evolving state data continues to impact tax rate estimates.

A significant portion of the meeting focused on critical facilities projects and how best to present these needs to the community. The committee debated whether major facilities projects should be included within the operating budget or presented as a separate warrant article to approve the use of anticipated surplus funds from FY2025.

The committee also discussed the challenges of communicating tax rate information amid uncertainty around state yield, enrollment verification, common level of appraisal changes, and potential state buy-downs. Given these variables, members agreed to proceed cautiously with tax rate messaging and to confirm legal requirements and best practices before sharing additional estimates publicly.

The committee emphasized the importance of proactive, coordinated communication—including clear visuals to help the community understand both the budget context and the urgency of facilities needs.

The meeting concluded with agreement on next steps to further refine budget presentations, continue identifying cost savings, and prepare clear, accessible information for stakeholders as the district moves toward upcoming community forums and Town Meeting.

Important Upcoming Dates

• Monday, January 5 | 6:00 PM: School Board Meeting

• Wednesday, January 7 | 7:00 PM: Community Budget Forum (Auditorium)

• Monday, January 12 | 8:15 AM: Finance Committee Meeting

• Monday, January 19 | 6:00 PM: School Board Meeting

Due to inclement weather, the St. Johnsbury School District's Community Budget Forum scheduled for today has been postponed. The forum will be rescheduled the week of January 5th.

The St. Johnsbury School District's Finance Committee met on December 8th, 2025 to review the first draft of the FY27 budget, presented by Superintendent Karen Conroy. The meeting included updates on Act 73, the FY25 audit, anticipated surplus options, and detailed discussion of the upcoming budget.

FY25 Audit and Anticipated Surplus
Auditors have begun reviewing FY25 records, including Title I and ARP ESSER for the single audit. The district anticipates a surplus, though the exact amount is pending auditor confirmation. Superintendent Conroy shared legal guidance noting that any use of surplus funds—such as adding to a capital reserve or offsetting expenditures in the FY27 budget—requires voter approval. The committee discussed critical facility needs, including bleachers, gym repairs, the nurse’s shower, sprinkler inspections, and door hardware/locks. Options for addressing these needs will be presented to the board, and a community and media walkthrough was recommended to share the scope of necessary projects.

FY27 Budget Overview

Superintendent Conroy presented the FY27 budget draft, which totals $32,210,692, a 6.6% increase over FY26. The budget maintains all current programs, adds seven Special Education positions, and expands the district's Special Education Therapeutic Program, C3P. The primary factors driving the increase are salaries, benefits, and high school tuition. In addition, the district is planning federal funding at 80% of current levels due to expected grant reductions.

Next Steps and Upcoming Meetings
Tax rate calculations are still pending, as they rely on finalized Household Income verifications from the Vermont Agency of Education, which will influence Long Term Weighted Average Daily Membership (LTW ADM) calculations. The board will review the draft budget tonight, and community input will be gathered at the Community Budget Forum on Wednesday, December 10 at 6:30 PM, which will be held in the auditorium at the St. Johnsbury School. A follow-up Finance Committee meeting is scheduled for Thursday, December 18 at 8:15 AM to review updated information and finalize budget inputs before the January 5, 2026 school board meeting.

The St. Johnsbury School District’s Finance Committee convened on November 10, 2025, to continue discussions on the development of the FY27 budget. Director of Finance Jacob Wood presented updated financial projections and discussed his preliminary calculations and budget assumptions which include a 7.4% increase in state health insurance premiums, a figure that will be refined after open enrollment concludes later this month.

To ensure revenues are accurately reflected, the district will also budget for anticipated bank interest earnings on the Tax Anticipation Note. Additionally, the district expects a temporary reduction in bond payments next year by applying unused bond funds to pay down the principal balance.

Primary cost drivers for the FY 2027 budget include salaries and benefits, pending the outcome of current negotiations, as well as unknown tuition increases from independent schools.

Director of Operations Charlotte Holt shared the district’s Budget Communications Plan, which outlines how the St. Johnsbury School District will engage staff, students, families, and community members throughout the FY 2027 budget development process. The plan is designed to promote transparency, encourage participation, and build understanding of budget priorities and constraints.

The Finance Committee will meet again on Monday, December 8th at 8:30 AM at the St. Johnsbury School District. During that meeting, the first draft of the FY27 budget will be presented to the Board and community for review and feedback.

At the November 3rd School Board meeting, Superintendent Karen Conroy shared important updates on the FY 2027 budget development process, including the results of recent stakeholder input surveys and information about an anticipated one-time surplus currently awaiting confirmation by district auditors.

As part of the FY 2027 budget and planning process, the district conducted surveys with community members, staff, and students to gather valuable input on district priorities and needs.

A summary of the survey results highlighting participation numbers, common themes, and key takeaways was shared with the Board and is available here for review. Across all groups, participants emphasized the importance of:

• Maintaining strong teaching and support staff,

• Addressing student behavioral and mental health needs, and

• Continuing to invest in facilities and programs that foster engagement and well-being.

Superintendent Conroy and the School Board expressed appreciation to everyone who took the time to share their perspectives. They emphasized the importance of ongoing communication and community involvement as the district continues to develop a responsible, student-centered budget.

Facilities Director Marc Brown shared the Facilities and Sustainability Plan presentation which can be viewed here, as it closely aligns with several of the priorities identified through the stakeholder surveys.

Unanticipated Surplus

Although final figures are still being confirmed with auditors, the district anticipates a surplus resulting from:

• Interest earnings on the Tax Anticipation Note,

• Unused ESSER indirect funds originally reserved for project contingencies, and

• Lower special education tuition expenditures.

Superintendent Conroy recommended that the Board consider reinvesting these one-time funds into deferred building maintenance projects. Doing so would allow the district to return to a more predictable and sustainable facilities plan preserving infrastructure, reducing future emergency costs, and supporting long-term fiscal stability.

FY 2027 Budget Development Progress

The district remains on track to meet FY 2027 budget development deadlines. Finance Director Jacob Wood has completed department-level budget reviews with administrators and is incorporating stakeholder feedback into the first draft of the budget. The draft includes the following preliminary assumptions:

• Health Insurance: VEHI has announced a projected 7.4% increase.

• Negotiations: As this is a negotiation year, salary adjustments have not yet been determined.

• Tuition Rates: Independent school tuition rates have not yet been announced. The district is reaching out to area schools to anticipate increases and confirm student enrollments.

• PreK Enrollment: Enrollment has declined substantially, resulting in a reduction to the PreK tuition budget.

The preliminary budget remains on schedule and will continue to be refined as additional information becomes available from the state and as negotiations, tuition projections, and enrollment data are finalized.

Upcoming Budget Development Meetings:

• November 10, 2025 - 8:00 AM: Finance Committee Meeting
• December 4, 2025 - 4:30 PM: Finance Committee Meeting (Budget Forum)
• December 8, 2025 - 8:15 AM: Finance Committee Meeting
• December 8, 2025 - 6:00 PM: School Board Meeting

The district encourages continued community participation as we work together to finalize the FY 2027 budget and address the needs of our students and families.

Town Meeting Day is March 3rd, but you don’t have to wait.

You have two ways to vote early:

• Vote in person at the Town Clerk’s Office during regular business hours using an absentee ballot, anytime leading up to Town Meeting Day, or

• Request an absentee ballot by phone at (802) 748-4331, by email at townclerk@stjvt.com, or online at vote.vermont.gov.

Feedback is ongoing, please ask questions or share your thoughts through the following link or QR code. We look forward to hearing from you.

Karen E. Conroy

Superintendent

St. Johnsbury School District

1216 Railroad Street, Suite C

St. Johnsbury, VT 05819

(802) 745-2791

Karen.Conroy@stjsd.org

The St. Johnsbury School Board can be reached at schoolboard@stjsd.org.