The Mountain Home Public Schools Board approved a $46.6 million budget for the 2026-27 school year during its August 6 meeting, projecting a planned draw of $803,378 from its reserves.
The budget anticipates $45,820,323 in revenue across all funds, while expenditures are projected at $46,623,701. As a result, the district's combined fund balance is expected to decline from $15,880,264 at the year's start to $15,076,886 by the year’s end.
Presented by district financial officer Harper, the budget's initial projected shortfall was reduced by over $400,000 after adjustments to revenue sources tied to state aid. Specifically, the district received approximately $450,000 due to declining enrollment and $34,691 in enhanced transportation funding, along with other smaller financial adjustments. The finalized figures reflected these changes.
Board members examined the conservative assumptions underlying the budget. A reduction in both projected revenue (down $1 million from last year) and expenditures (down $1.5 million from last year) reflects budgeting caution, officials noted.
Among the expenditures is the purchase of five new school buses, previously approved by the board. Superintendent Dr. Jake Dewey explained the impact of this planned purchase on reserve funds. "I did say I felt comfortable that if we did have to spend into that beginning balance, it was well worth it," Dewey said. "We’re hopeful we won’t. But if we had to, that was something that needed to be purchased."
Last school year also saw a $1.2 million budgeted draw from reserves, but the district ended the year in a stronger financial position than anticipated. With this precedent in mind, district officials stressed their commitment to aligning revenues and expenditures more closely by year’s end.
Teacher salaries comprise the largest single line item in the budget at $17,852,106. Other key figures include $7.19 million in the building fund, $2.8 million for debt service, $3.7 million in federal funding, and $1.8 million allocated for food services—a category balanced by design.
Additionally, the board reviewed a financial report for July, which showed that the district closed the month with a total fund balance of $15,677,547.62—up $1.1 million from the same point a year ago. The operating fund closed at $7,932,824.35, a year-over-year decrease of roughly $116,000, while the activity fund rose by approximately $62,000 to $616,732.41.
Student enrollment, a key factor in district funding, remains in flux. As of the meeting, enrollment stood at 3,647 students, an increase of 92 from the previous month. Administrators indicated this number may decrease once withdrawals are processed, as families who transfer to virtual academies or homeschooling are recorded differently in state figures.
Adopting the budget is a state-mandated requirement, with districts submitting their figures through the Arkansas Public School Computer Network system (APSCN) by September 30 for review during Cycle 1 reporting.
Budget adoption was the sole action item addressed during the meeting.