HSE Schools presents proposed 2027 Budget

Submitted by Hamilton Southeastern Schools

Hamilton Southeastern Schools presented its proposed 2027 budget to the Board of School Trustees on Wednesday, Sept. 23, outlining a spending plan that is approximately $15 million lower than the district’s 2026 budget.

The advertised 2027 budget totals approximately $325.9 million with a predicted budget of $323.9 million. It is common practice to advertise the budget a little higher than expected to protect against unknown factors prior to the final budget order. According to Assistant Superintendent of Finance Tim Brown, the decrease in this year’s proposed budget reflects several factors, including spending reductions as identified through the district’s Budget Task Force, changes in revenue, debt payments decreasing, and the proposed replacement operating referendum.

Kegley

“We’ve spent a lot of time over the past year looking at where we can reduce costs and operate more efficiently,” Superintendent Dr. Matt Kegley said. “That work is making a difference. We know there are still financial challenges ahead, but we’re bringing forward a budget that is about $15 million lower than last year while keeping our focus on students and the classroom.”

Work by the Budget Task Force identified nearly $8 million in projected savings that helped better balance the district’s 2026 budget and allowed HSE to reduce planned spending in several areas for 2027.

Compared with the 2026 budget, the projected 2027 spending plan includes:

• A $7.4 million reduction in the Education Fund, which supports classroom expenses including teachers, instructional staff, and supplies.
• An approximately $8 million reduction in the Debt Service Fund primarily due to some debt falling off. The district is proposing to maintain the same Debt Service Fund tax rate, while the Debt Service Exempt rate is projected to decrease.
• A $1.1 million reduction in the Operations Fund, which supports expenses such as transportation, maintenance, and central office operations. This is made possible due to cost savings and more expenses being moved to G.O. Bonds.
• A $1.3 million increase in the Referendum Fund, which includes additional funding budgeted for behavioral health and traffic control. The referendum levy included in the proposed budget is contingent on the outcome of the replacement operating referendum on the Nov. 3 ballot.

The district continues to face financial pressures heading into 2027, including declining enrollment, increasing health insurance costs and higher mandatory teacher retirement contributions.

Based on current projections, the district’s maximum tax rate for 2027 is expected to be $1.1912, compared to the 2026 rate of $1.1476. Brown notes that despite declines in assessed valuation, the proposed budget maintains a flat debt service tax rate and a reduced debt service exempt rate compared to 2026.

The proposed budget will continue through the public budget process. The Board is scheduled to hold a public hearing on the proposed 2027 budget on Oct. 14, with adoption scheduled for Oct. 28.

For additional information on the district’s finances, community members can review budget materials available at hseschools.org/finances.