Litchfield School Board Sets 2025-2026 Budget with Planned Deficit Spending

Litchfield CUSD 12 Meeting | September 18, 2025

Article Summary: The Litchfield School Board adopted a fiscal year 2025-2026 budget that includes approximately $476,000 in deficit spending. Superintendent Dr. Kelly McClain emphasized that the deficit is planned to cover capital projects, storm damage repairs, and debt repayment, supported by healthy fund balances.

Litchfield School District Budget Key Points:

• Total Deficit: The budget projects an overall deficit of roughly $476,000.

• Fund Balances: Despite the deficit, administrators report that overall fund balances remain “healthy.”

• Key Drivers: Major expenses include repairs from storm damage in July, planned capital improvement projects, and the repayment of long-term debt.

• Salaries and Benefits: Personnel costs account for 58% of total spending, with the Education Fund dedicating 79% of its expenditures to salaries and benefits.

The Litchfield Community Unit School District No. 12 Board of Education on Thursday, September 18, 2025, voted unanimously to adopt the budget for the 2025-2026 fiscal year.

Before the regular meeting, the board held a public hearing on the budget at 6:00 p.m. Superintendent Dr. Kelly McClain presented the financial plan, noting that while the district is deficit spending by approximately $476,000, this is a strategic move supported by strong existing fund balances.

“Some of that deficit spending is planned for capital projects issues due to a storm damage we had in late July and payment of long-term debt,” McClain explained during the hearing. She added that the district intends to file an insurance claim for the storm damage, which could eventually offset some of those costs.

The budget breakdown reveals that local sources, primarily property taxes, account for 38% of revenue, while General State Aid (Evidence-Based Funding) contributes 32%. Federal funding makes up 9%, with the remainder coming from other local sources.

McClain highlighted that the district moved $254,000 in salaries for 10-month non-certified employees into the current fiscal year to correct a payroll timing issue. This one-time adjustment contributes to a small $160,000 deficit in the Education Fund.

The Capital Projects Fund (Fund 60) shows a planned deficit, driven in part by a $1.47 million transfer to debt service. This includes a “double payment” on debt certificates to align the payment schedule before the end of the fiscal year.

“I want to be clear that we have healthy fund balances and this allows us to do some planned deficit spending,” McClain assured the board.

The board voted 5-0 to adopt the budget. Board members present included President Julie Abel, Vice-President Ron Anglin, Secretary Valerie Cain, and Mark Bloome. Jimmy Gorowski and Mandy Jewell were absent.