August 24, 2026 at 5:00 PM - Gothenburg Board of Education Budget Workshop

The purpose of the workshop was identified as an opportunity for Board members to come together and review the district’s financial picture in detail. The workshop provided an opportunity to ensure a clear understanding of revenue sources and known and anticipated expenses while exploring potential challenges and priorities for the upcoming year. Additionally, Dr. Jonas noted that the workshop was designed to promote transparency, provide an opportunity for Board members to ask questions, and build shared understanding so that, when the budget is formally adopted, decision-makers and the community can have confidence that it reflects the district’s needs, goals, and long-term financial stability.

Dr. Jonas reminded the Board of Education that all decisions must begin with the district’s Strategic Plan and highlighted the three strategies the district has explored in greater detail over the past several months. Dr. Jonas then outlined the district’s backwards-planning model for planning for known and anticipated expenses. Negotiations, wages, and benefits, which comprise 81% of the district’s overall budget, are largely solidified by March. Between March and June, state aid is certified. The final piece of the process is property valuation, which is released on August 20.

Dr. Jonas outlined the overall breakdown of wages and benefits, noting that teacher compensation comprises 63% of the total wages and benefits package. She then highlighted known expense changes for the upcoming school year, noting that 75% of those expenses were approved in February and March, totaling $356,789 of the $482,828 overall increase. After wages and benefits, the remaining 19% of the budget consists of capital outlay, supplies, purchased services, and professional services.

Dr. Jonas compared the district’s expense changes with the rate of inflation, noting that since 2017-2018, inflation has increased 34%, while the district’s total tax request has increased 27%.

Dr. Jonas then reviewed the district’s revenue sources, noting that the change in the state funding model three years ago has significantly increased the state’s portion of the district’s overall revenue. She noted that agricultural land accounts for approximately 48 cents of every dollar of property tax revenue, followed by residential property at 29 cents, personal property at 11 cents, commercial property at 8 cents, and agricultural improvements and farmsteads at 3 cents.

The Board then reviewed a ten-year history of property valuation and school tax asking. The review showed that property valuations have outpaced increases in tax requests. Agricultural improvements and farmsteads and residential property have experienced the greatest impact over the past ten years, with a 30% increase in actual taxes paid. In contrast, agricultural land is paying, on average, 20% less in taxes than it did ten years ago reflective of tax credits. 

Dr. Jonas then presented three budget options to the Board of Education. Board members were paired with a member of the Finance Committee in each group to discuss the three scenarios, weighing the benefits and risks of each option. When the groups reconvened, the Board proposed a fourth option that blended elements of the Neutral Budget and Future Building Projects scenarios.

 

The Board requested that Dr. Jonas prepare the published budget documents incorporating the following information:

Board members noted that this option utilizes 1.72% of the 6% increased authority approved by the Board in July. This approach allows the district to protect the cash reserve that has been intentionally rebuilt over the past four years while also planning for future facility needs.

Dr. Jonas noted that funding for the upcoming secure entryway project (Areas C & D) is not part of this tax request as the funds are already in-district and earmarked for this project. The proposed tax request would, however, allow the district to begin building the Special Building Fund in preparation for future work in Areas E & F, which is currently projected to cost $2.5-$3 million. These future projects will address significant structural and facility needs, including roofing and HVAC, in addition to any approved cosmetic improvements.