HSE Schools adopts 2027 budget, holds teacher contract hearing

Submitted by HSE Schools

Hamilton Southeastern (HSE) Schools is heading into 2027 with a smaller budget. The Board of School Trustees approved a financial plan Wednesday evening, Oct. 28, that is projected to be approximately $15 million lower than last year.

The adopted budget totals $325.9 million, with actual expenditures expected to reach $323.9 million, compared to $339 million in 2026. The decrease reflects ongoing cost-saving efforts, including nearly $8 million in projected savings identified through the district’s Budget Task Force, along with changes in revenue and debt obligations.

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.”

Financial challenges remain, including declining enrollment, rising health insurance costs, and higher mandatory teacher retirement contributions. The projected 2027 tax rate is $1.1912 per $100 of assessed valuation, compared to $1.1476 in 2026.

The Board also approved the capital projects, bus replacement, and referendum spending plans. The 2027 budget includes a projected $31.3 million Referendum Fund spending plan with funding contingent on the outcome of the replacement operating referendum on Nov. 3.

Wednesday’s meeting also included a public hearing on the tentative 2026-27 teacher contract with the Hamilton Southeastern Education Association (HSEA).

The proposed contract includes a $1,225 base salary increase for eligible teachers, with an additional $603 dependent on a successful passage of the referendum. Starting salaries for new teachers hired at the beginning of the 2026-27 school year would see a $500 increase with the successful passage of the referendum. New teachers hired after ratification would also increase by $750, with another $250 contingent on the election outcome.

The Board is scheduled to consider ratification at 6 p.m. Wednesday, Nov. 4.

Additional information is available at hseschools.org/community/finances and hseschools.org/community/public-notices.