School Board Workshop, Jan 6, 2026

Operational Budget Adjustments

The district is navigating several revenue and expense shifts that have necessitated a reevaluation of the initial budget request for the 2027 cycle.

• Advocacy funding increased by $177,000, specifically earmarked for middle school furniture.
• Special education costs are rising due to a lack of available in-district placements, requiring expensive transfer fees for outside services.
• The district plans to assume funding for the Learning Center Counselor to offset reductions in external funding.
• A proposal exists to hire one full-time school psychologist to replace more expensive contracted services for student evaluations.
• Administrative adjustments include reinstating academic coordinator positions at the high school to manage department-specific needs like textbook orders.

Geothermal HVAC Project

The “Plain English” Explanation: This project compares a high-tech geothermal heating and cooling system, which uses the earth’s temperature to regulate the building, against a traditional air-cooled system.

• The geothermal option costs $7.56 million, approximately $1.9 million over the capital improvement base.
• Switching to a traditional HVAC approach would save $178,000 in upfront costs without impacting the project timeline.
• Annual utility savings between geothermal and traditional systems are estimated at only 270,000 kWh (roughly $6,000), which the board noted is negligible in a multi-million dollar budget.
• Environmental benefits were weighed against the high cost, with the board leaning toward the traditional system to preserve funding for staff.

Staffing and Class Size Scenarios

The district is evaluating three primary scenarios to address a $3.4 million tax cap gap, focusing on the impact on student-to-teacher ratios for the 2026-2027 school year.

• Tax Cap Compliant Budget: Requires a reduction of $3.4 million, resulting in the loss of 20 teaching positions. Class sizes in 7th and 8th grade would rise to 28-30 students, exceeding science lab capacities.
• 1.7 Million Over Cap: Reduces staff by 5–8 positions. This maintains elementary class sizes at approximately 21 students and middle school teams at 17-18 students.
• 2.6 Million Over Cap: A “no staff cut” model that preserves all current positions but requires a significant override of the tax cap.
• School Board members expressed concern that middle school staffing has been “seesawing” for years, creating academic and social turmoil.

Learning Center Support

The Dover Adult Learning Center (DALC) is a program that provides alternative pathways for adult learners and high school students who cannot thrive in a traditional classroom setting.

• The district currently funds the Director and Administrative Assistant for this program.
• The budget includes a $22,000 rent subsidy previously covered by the city.
• The total district contribution represents approximately 50% of the center’s operating budget.
• Board members emphasized the center’s role in helping at-risk students achieve high school diplomas.

Board Inquiries

• Financial Impact of Health Insurance: School Board members questioned the shift in health insurance projections from 10% down to 6%, seeking clarification on the actual cost vs. budgeted estimates.
• Geothermal Viability: Inquiry into the lifespan and maintenance costs of geothermal vs. traditional units (estimated 20-25 year lifespan for both).
• Subsidy Continuity: Questions regarding whether the city would continue the $22,000 rent subsidy for the Learning Center or if the burden would remain solely on the school budget.
• State Funding Inadequacy: General discussion on the “downshifting” of costs from the state to the local property tax base.

Financial/Strategic Outlook

The Board reached a preliminary consensus to eliminate the geothermal portion of the HVAC project to save costs. The “Tax Cap Compliant” scenario (losing 20 teachers) was widely rejected as “catastrophic.” The Superintendent will prepare three refined scenarios for the final workshop on February 10, 2026, focusing on a range between the 1.7 million and 2.6 million over-cap options. A final decision must be reached before the deadline to present to the City Council for the FY2027 budget.