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Home My WebLink About2026-01-28 SB Packet - Released - Finance Summit (Whitebook)FY2027 Financial Summit III Select Board, School Committee, Appropriation Committee, Capital Expenditures Committee January 28, 2026 7:00 PM *Conducted by Remote Participation AGENDA Summit ITEMS FOR INDIVIDUAL CONSIDERATION 1.FY2027 Financial Summit III FY2027 Preliminary Budget and Financing Plan ADJOURN 1.Anticipated Adjournment 8:30pm NEXT MEETING INFORMATION - LABELONLY Meeting Packet: https://lexington.novusagenda.com/agendapublic/ *Members of the public can attend the meeting from their computer or tablet by clicking on the following link at the time of the meeting: https://lexingtonma.zoom.us/j/85030106550? pwd=VPhTZtcOaKd1Qwaga0KwwskVYgkcDd.1 Meeting ID: 850 3010 6550 Passcode: 595513 An Act Relative to Extending Certain State of Emergency Accommodations: https://www.mass.gov/the-open-meeting-law A meeting of the Select Board will be held on Monday, February 2, 2026 at 6:30pm via hybrid participation. Hearing Assistance Devices Available on Request All agenda time and the order of items are approximate and subject to change. AGENDA ITEM SUMMARY LEXINGTON BOARD OF SELECTMEN MEETING AGENDA ITEM TITLE: FY2027 Financial Summit III PRESENTER: Carolyn Kosnoff, Assistant Town Manager for Finance; Rosalyn Impink, Budget Officer ITEM NUMBER: I.1 Sub Item: FY2027 Preliminary Budget and Financing Plan SUMMARY: Category: Informing Carolyn Kosnoff will present the FY2027 Preliminary Budget & Financing Plan. SUGGESTED MOTION: FOLLOW-UP: DATE AND APPROXIMATE TIME ON AGENDA: 1/28/2026 ATTACHMENTS: Description Type White Book Summit III Presentation FY2027 Backup Material FY2027 Superintendent's Recommended Budget Summary Backup Material Town of Lexington FY2027 Preliminary Budget & Financing Plan Budget Summit III January 28, 2026 Town of Lexington FY2027 Preliminary Budget 2 The FY2027 budgets proposed by the Town Manager and Superintendent of Schools provide for a Balanced Town Budget Revenue Summary FY2026 Recap FY2027 Projected $ Change % Change Tax Levy $ 249,047,036 $ 258,361,669 $ 9,314,632 3.7% State Aid $ 21,532,602 $ 22,181,496 $ 648,894 3.0% Local Receipts $ 17,198,317 $ 18,821,440 $ 1,623,122 9.4% Available Funds*$ 25,611,684 $ 22,352,051 $ (3,259,633) (12.7)% Revenue Offsets $ (2,175,841) $ (2,360,640) $ (184,799) 8.5% Enterprise Funds (Indirect)$ 1,935,189 $ 2,047,125 $ 111,936 5.8% Total General Fund $ 313,148,989 $ 321,403,140 $ 8,254,153 2.6% Expenditure Summary FY2026 Appropriated FY2027 Recommended Budget $ Change % Change Lexington Public Schools $ 146,033,333 $ 151,729,248 $ 5,695,915 3.9% Minuteman High School $ 3,569,482 $ 4,149,188 $ 579,706 16.2% Shared Expenses $ 77,370,757 $ 82,329,423 $ 4,958,666 6.4% Municipal Departments $ 50,995,276 $ 52,995,295 $ 2,000,020 3.9% Cash Capital-Tax Levy and Available Funds $ 19,524,216 $ 18,158,612 $ (1,365,604) (7.0)% Other**$ 15,655,924 $ 12,041,374 $ (3,614,550) (23.1)% Total - General Fund Only $ 313,148,988 $ 321,403,140 $ 8,254,152 2.6% * Available Funds reflects one-time revenue sources, primarily Free Cash. ** Other expenses are primarily set-asides into reserves including the Capital Stabilization Fund, OPEB Trust, and SPED Reserve. Town of Lexington FY2027 Preliminary Budget 3 General Fund Revenue Projections % GrowthProjected GF Revenue Actual GF RevenueFY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024 FY2025FY2026FY2027—% 2.50% 5.00% 7.50% 10.00% •The total FY2027 General Fund revenue projection of 2.6% is lower than prior years, primarily due to a decrease in Available Funds (Free Cash, estimated at $20.5M). •Recurring revenues, those allocated for ongoing operations, are increasing by 3.9% Town of Lexington FY2027 Preliminary Budget 4 FY2027 Balanced Budget Tax Levy 79.8% State Aid 6.9% Local Receipts 5.8% Available Funds 6.9% Enterprise Funds (Indirect) 0.6% FY2027 Revenue Summary Tax Levy $ 258,361,669 State Aid $ 22,181,496 Local Receipts $ 18,821,440 Available Funds $ 22,352,051 Revenue Offsets $ (2,360,640) Enterprise Funds (Indirects)$ 2,047,125 Total $ 321,403,141 Schools 48.5% Employee Benefits 14.0% Retirement 3.8% Debt Service 2.0% Other Shared Expenses 1.0% Facilities 4.8% Municipal Departments 16.5% Cash Capital 5.6% Reserves/Other 3.7%FY2027 Expense Summary Schools $ 155,878,436 Employee Benefits $ 45,071,638 Debt Service $ 12,300,042 Retirement $ 6,274,815 Other Shared Expenses $ 3,152,786 Facilities $ 15,530,142 Municipal Departments $ 52,995,295 Cash Capital $ 18,158,612 Reserves/Other $ 12,041,375 Total $ 321,403,141 Town of Lexington FY2027 Preliminary Budget 5 FY2027 Revenue Allocation Summary (in thousands)Summit I Summit III 1 Total Revenues $ 320,164 $ 321,403 2 Less: FY2026 School Budget $ 146,033 74.0%$ 146,033 74.0% 3 Less: FY2026 Municipal Budget (inc.Community Center)$ 51,264 26.0%$ 51,264 26.0% 4 Less: Shared Expenses $ 88,489 $ 86,479 5 Less: Set-Asides $ 29,693 $ 29,932 6 Total Base Budget $ 315,479 $ 313,708 $ Change 7 Total New Revenue to be Allocated $ 4,685 $ 7,695 $ 3,010 8 School Alloc./ FY2027 Total $ 3,467 74.0%$ 5,696 74.0%$ 2,229 9 Muni Alloc. / FY2027 Total $ 1,217 26.0%$ 1,999 26.0%$ 782 Summit I Revenue Allocation %Inc vs PY Initial Budget Request %Inc vs PY Surplus/ (Shortfall) 10 FY2027 School budget $ 149,501 2.4%$ 152,810 4.6%$ (3,309) 11 FY2027 Municipal budget $ 52,481 2.4%$ 53,871 5.1%$ (1,390) Summit III Revenue Allocation %Inc vs PY Updated Budget Request %Inc vs PY Surplus/ (Shortfall) 12 FY2027 School budget $ 151,729 3.9%$ 151,729 3.9%$ — 13 FY2027 Municipal budget $ 53,263 3.9%$ 53,263 3.9%$ — Town of Lexington FY2027 Preliminary Budget 6 Original Revised Variance Description $ 320,163,931 $ 321,403,140 $ 1,239,209 Updated Investment Income Projection (from $1.5M to $2.5M); add unused bond proceeds $239,209 $ 1,239,209 Total Revenue Increase/ (Decrease) $ 3,926,430 $ 4,149,188 $ 222,758 Updated Minuteman assessment, per preliminary budget $ 46,420,190 $ 44,371,638 $ (2,048,552) Updated Health Benefits assuming 9% premium increase (vs 15%) $ 15,645,142 $ 15,530,142 $ (115,000) Revisions to Facilities shared service budget (including PIR) $ 70,000 $ — $ (70,000) Facilities PIR -initial request $ (2,010,794) Shared Expenses Increase/ (Decrease) $ 1,000,000 $ 2,152,935 $ 1,152,935 Set-Aside for as yet to be identified FY2027 needs (Free Cash) $ 16,743,229 $ 15,054,503 $ (1,688,726) Cash Capital - Free Cash and Other Available Funds $ — $ 700,000 $ 700,000 Set-aside for one-time School Curriculum Purchase (Free Cash) $ — $ 75,000 $ 75,000 Set Aside for Vision Survey (Free Cash) $ 239,209 Set-Aside One-Time Funds Increase/ (Decrease) $ 3,010,794 Net Positive/ (Negative) Impact on Revenue Allocation 74%$ 2,227,987 Additional School Allocation 26%$ 782,806 Additional Municipal Allocation Summary of Revenue Allocation Changes from Summit I Town of Lexington FY2027 Preliminary Budget 7 FY2027 Shared Expenses Budget Summary Shared Expenses FY2026 Appropriated FY2027 Recommended Budget $ Change % Change Minuteman Regional School $ 3,569,482 $ 4,149,188 $ 579,706 16.2% Shared Expenses: Retirement $ 11,521,504 $ 12,300,042 $ 778,538 6.8% Employee Benefits $ 41,147,189 $ 44,371,638 $ 3,224,449 7.8% Other Benefit Expenses*$ 700,000 $ 700,000 $ — —% Property & Liability Insurance $ 1,477,696 $ 1,653,542 $ 175,846 11.9% Solar Producer Payments $ 390,000 $ 390,000 $ — —% Debt Service $ 5,983,068 $ 6,274,815 $ 291,747 4.9% Reserve Fund $ 850,000 $ 1,000,000 $ 150,000 17.6% Public Facilities $ 15,189,766 $ 15,530,142 $ 340,376 2.2% Town/School Refuse & Recycling $ 112,128 $ 109,244 $ (2,884) (2.6)% Total Shared Expenses $ 77,371,351 $ 82,329,423 $ 4,958,072 6.4% Grand Total $ 80,940,833 $ 86,478,611 $ 5,537,778 6.8% *Other includes Workers Compensation and Unemployment Town of Lexington FY2027 Preliminary Budget 8 Revenues Set-Aside for Designated Expenses - FY2027 Tax Levy Free Cash Other Total 1 Set-Aside for Unanticipated Current Fiscal Year Needs $ — $ 250,000 $ — $ 250,000 2 Unallocated $ — $ 2,037,935 $ — $ 2,037,935 3 Other Post-Employment Benefits (OPEB)$ — $ 2,129,721 $ — $ 2,129,721 4 Cash Capital $ — $ 14,907,344 $ 262,159 $ 15,169,503 5 Set-Aside for School Literacy Curriculum $ — $ 700,000 $ — $ 700,000 6 Appropriate into Capital Stabilization Fund $ 6,580,908 $ — $ — $ 6,580,908 7 Street Improvement Program $ 2,746,777 $ — $ — $ 2,746,777 8 Municipal Building Envelope and Systems $ 242,332 $ — $ — $ 242,332 9 Warrant Articles $ — $ 75,000 $ — $ 75,000 10 Subtotal $ 9,570,016 $ 20,100,000 $ 262,159 $ 29,932,175 11 Free Cash to Support Operating Budget $ — $ — $ — $ — 12 Contribution to Pension Fund $ — $ 400,000 $ — $ 400,000 13 Grand Total $ 9,570,016 $ 20,500,000 $ 262,159 $ 30,332,175 Town of Lexington FY2027 Preliminary Budget 9 Municipal Budget Update Municipal Allocation Deficit from Initial Requested Budget $ (1,390,226) Additional Revenue Allocation $ 782,806 Municipal Budget Reductions $ 599,544 Refinement of Salary Projections $ 7,876 Remaining Deficit $ — *Total reductions includes net reductions in Facilities Department ($115,000) Reduction Classification Reduction Amount Notes Adds Financial Risk $ (410,498) Purchase Deferrals; Reduce Professional & Contract Services Discretionary $ (19,000) Internship programs Hiring Freeze $ (58,946) 1 FTE DPW Internal Reduction $ (71,200) Travel, Conferences, Professional Development Supply/Maintenance Reduction $ (189,900) Supplies or Ongoing Maintenance Garage Door Maintenance PIR $ 35,000 Add Program Improvement Total Reductions*$ (714,544) Town of Lexington FY2027 Preliminary Budget 10 FY2027 Municipal Department Budget Summary Public Works 28.2% Law Enforcement 18.6% Fire & EMS 18.2% Library 7.2%Human Services 3.5% Health 1.1% LUHD 4.9% Select Board 3.0% Town Manager 3.2% Town Committees 0.1% Finance 4.4% Town Clerk 1.3% Innovation & Technology 6.3% FY2027 Budget Summary Public Works $ 14,740,639 Law Enforcement $ 9,701,473 Fire & EMS $ 9,481,822 Library $ 3,762,283 Human Services $ 1,828,850 Health $ 560,006 LUHD $ 2,542,629 Select Board $ 1,553,553 Town Manager $ 1,674,736 Town Committees $ 73,120 Finance $ 2,315,760 Town Clerk $ 680,998 Innovation & Technology $ 3,279,426 Total $ 52,195,295 Town of Lexington FY2027 Preliminary Budget 11 Balancing the FY2027 Municipal Budget Municipal Budgets FY2027 Initial Request FY2027 Delete FY2027 Add FY2027 Recommended Budget Public Facilities*$ 15,645,142 $ (150,000) $ 35,000 $ 15,530,142 Municipal Departments: Public Works $ 14,868,709 $ (128,070) $ 14,740,639 Police $ 9,821,573 $ (120,100) $ 9,701,473 Fire $ 9,600,822 $ (119,000) $ 9,481,822 Library $ 3,790,583 $ (28,300) $ 3,762,283 Human Services $ 1,846,200 $ (17,350) $ 1,828,850 Health $ 565,006 $ (5,000) $ 560,006 Land Use Department $ 2,598,453 $ (55,824) $ 2,542,629 Select Board $ 1,573,553 $ (20,000) $ 1,553,553 Town Manager $ 1,704,736 $ (30,000) $ 1,674,736 Salary Adjustment Account $ 840,000 $ (40,000) $ 800,000 Town Committees $ 73,120 $ 73,120 Finance $ 2,339,660 $ (23,900) $ 2,315,760 Town Clerk $ 682,998 $ (2,000) $ 680,998 Innovation & Technology $ 3,289,426 $ (10,000) $ 3,279,426 Total Municipal Departments $ 53,594,839 $ (599,544) $ — $ 52,995,295 *Public Facilities is a shared service. Initial request does not include PIR of $70K. Total does not include $109K Shared Exp.for Refuse & Recycling Collection for School & Muni. Buildings Town of Lexington FY2027 Preliminary Budget 12 FY2027 Municipal Department Budget Summary Municipal Budgets FY2026 Appropriated FY2027 Recommended Budget $ Change % Change Public Facilities*$ 15,189,172 $ 15,530,142 $ 340,970 2.2% Municipal Departments: Public Works $ 13,971,800 $ 14,740,639 $ 768,839 5.5% Police $ 9,745,978 $ 9,701,473 $ (44,505) (0.5)% Fire $ 9,458,988 $ 9,481,822 $ 22,834 0.2% Library $ 3,691,461 $ 3,762,283 $ 70,822 1.9% Human Services $ 1,703,597 $ 1,828,850 $ 125,253 7.4% Health $ 561,024 $ 560,006 $ (1,018) (0.2)% Land Use Department $ 2,465,236 $ 2,542,629 $ 77,393 3.1% Select Board $ 1,439,529 $ 1,553,553 $ 114,024 7.9% Town Manager $ 1,609,722 $ 1,674,736 $ 65,014 4.0% Salary Adjustment Account $ — $ 800,000 $ 800,000 —% Town Committees $ 73,120 $ 73,120 $ — —% Finance $ 2,206,218 $ 2,315,760 $ 109,542 5.0% Town Clerk $ 692,479 $ 680,998 $ (11,481) (1.7)% Innovation & Technology $ 3,376,124 $ 3,279,426 $ (96,698) (2.9)% Total Municipal Departments $ 50,995,276 $ 52,995,295 $ 2,000,020 3.9% *Public Facilities is a shared service. Total does not include $109K Shared Exp.for Refuse & Recycling Collection for School & Muni. Buildings Town of Lexington FY2027 Preliminary Budget 13 FY2027 General Fund Budget Highlights •Lexington High School Financing: Construction & debt service will begin in FY2027; an $800K draw-down from the Capital Stabilization Fund is recommended to mitigate taxpayer impact. •Refuse, Recycling & Composing: Plans are underway to restructure the Town's refuse and recycling program to automated collection beginning in FY2028. ◦The FY2027 Capital budget recommends $1.2M for new carts (11,000 for each program) to make this transition. The FY2027 operating budget continues to fund compost collection for 4,000 households at no charge to the customer. •Public Transportation: The Human Services budget includes new contractual rates for the Lexpress Bus Service, which includes replacement of the bus fleet. The new 5-year contract began in FY2026. •Public Access Television: A new contract will begin in FY2027 and is included in the Select Board's budget. This budget allocates $200,000 of tax levy support to maintain current levels of service, level from FY2026. The amount of General Fund support is expected to increase in future budget cycles. •Set Asides include $75K for funding for a Vision for Lexington Community Survey to assess community needs and priorities and $700K for LPS one-time literacy curriculum purchase to comply with state legislation. Town of Lexington FY2027 Preliminary Budget 14 Town Manager's Recommended FY2027 Program Improvements Program Department Requests Recommended Not Recommended Total General Fund Requests $749,461 $150,000 $596,961 Non-General Fund Recreation Enterprise $100,000 $100,000 $— Total Non-General Fund $100,000 $100,000 $— Combined Requests Total $849,461 $250,000 $596,961 General Fund Recommended PIRs include: •$35K for the Public Facilities to implement a maintenace program for garage doors •$115K for Tyler Cashiering module, requested by the Finance Department, implemented in partnership with IT (in Capital Budget funded with Free Cash) Non General Fund Recommended PIRs include: •$100K for Recreation Strategic Plan (funded by Recreation Retained Earnings) Town of Lexington FY2027 Preliminary Budget 15 Appropriate Into Reserve Funds Lexington Pension Fund $12,300,042 –Current Balance (11/30/2025) $296.95 million –88.5% Funded; On-target to reach full funding in 2030 Post-Employment Benefits Fund $2,137,029 –Current Balance (12/31/2025) $45.03 million Capital Stabilization Fund $6,580,908 –Current Balance (12/31/2025) $50.53 million No additional funding is recommended for the General Stabilization Fund, Special Education Stabilization Fund, or Special Education Reserve Fund in FY2027. Town of Lexington FY2027 Preliminary Budget 16 Recommended Capital Budget - FY2027 Capital Requests Summary Free Cash/ Tax Levy Other Funding Sources Debt Total Other** General Fund $ 17,896,453 $ — $ 2,500,000 $ 20,396,453 $ — Excluded Debt Projects $ — $ — $ — $ — $ — Other Funding & Chapter 90 $ — $ 262,159 $ — $ 262,159 $ 1,768,022 Water Enterprise $ — $ 2,606,639 $ — $ 2,606,639 $ — Sewer Enterprise $ — $ 900,000 $ 404,080 $ 1,304,080 $ — Recreation Enterprise $ — $ 190,000 $ — $ 190,000 $ — Community Preservation Act*$ — $ 8,345,355 $ — $ 8,345,355 $ — Total (all Funds)$ 17,896,453 $ 12,304,153 $ 2,904,080 $ 33,104,686 $ 1,768,022 *Includes both Town and non-Town CPA funded projects. **Other represents Chapter 90 Aid for street improvements. This item does not require a Town Meeting appropriation. Town of Lexington FY2027 Preliminary Budget 17 FY2027 Capital Highlights •LHS Emergency Funds - $400,000 to fund emergency equipment repairs at the current LHS building until the new high school is operational. •Ladder Truck - $2,500,000 (Debt Financed) to replace the fire department's 2017 ladder truck. •Infrastructure Design Funds - $250,000 for North/Burlington sidewalk design and $100,000 for intersection design on Adams Street at East & Hancock. These may lead to construction projects of $5.2M and $5.5M respectively. •Totes for Automated Trash Collection - $1,204,000 for purchase of refuse & recycling carts for transition to automated collection in future cycles. •Police Station EV Chargers - $463,000 to install EV chargers at the police station to enable electric charging of the police department fleet. •146 Maple St. Athletic Fields Construction - $2,630,000 from the Town's Community Preservation Act (CPA) funds to construct new athletic fields after the demolition of the Central Administration Building. •Affordable Housing Trust (AHT) Funding - $3,200,000 from the Town's Community Preservation Act (CPA) funds to fund AHT initiatives. •Facilities Mechanical/Electric/Plumbing - $4,565,000 for Energy Recovery Units and partial gas to electric HVAC conversion at Fiske Elementary School. Town of Lexington FY2027 Preliminary Budget 18 Capital Stabilization Fund Balance History $21,730,961 $27,330,886 $32,769,537 $42,670,751 $50,168,582 $56,749,490 $6,580,908 FY2022 Actual FY2023 Actual FY2024 Actual FY2025 Actual FY2026 Approp.FY2027 Approp. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 Town of Lexington FY2027 Preliminary Budget 19 Town of Lexington FY2027 Preliminary Budget 20 Outstanding Items (as of 1/23/2026) •State Aid - Cherry Sheet Estimates have been released, current Ch70 Aid is proposed at $75/student vs estimated at $100/student in the budget. UGGA is proposed higher than budget estimates. The State's budget remains in process. •Health Insurance Premiums - Final increases in Health Insurance premiums are expected in late February. Further guidance from the Group Insurance Commission may be factored into the final recommended budget. •Final Minuteman Assessment - Final assessment for Minuteman HS is expected in early February when Minuteman's FY2027 Budget is finalized. •FY2027 Debt Service - Current amount is a placeholder that may be impacted by the February 2026 debt issuance. •Citizen's Petitions - Citizen's petitions have been submitted for the 2026 Annual Town Meeting, and are not included in the draft budget. These items may require staffing or investment in technology or infrastructure. •Free Cash - Current FY2027 estimate of $20,500,000 has not been certified by the Department of Revenue. Staff recommends any surplus remain unallocated. •Collective Bargaining Agreements - both Municipal and School departments are in contract negotiations that will impact salary projections. Salary reserves are set- aside for this purpose. Town of Lexington FY2027 Preliminary Budget 21 Current Policy Discussion Points •How to adjust for changes in State Aid, Minuteman Assessment or Health Insurance (if updated before the Brown Book): ◦A surplus of funds will be allocated to Municipal and School budgets ◦In the case of a shortfall, unallocated free cash will be applied to balance •Continue to Set Aside Tax Levy/ New Levy Growth Into the Capital Stabilization Fund: there is an implied trade-off between managing tax increases/LHS impact and maintaining a level service budget •Draw down of Capital Stabilization Fund: managing taxpayer impact of the Lexington High School Project in early years to create a gradual increase in tax bills •Maintain Existing Assets vs Creating New Assets: If less funding is available in future years, guidance will be needed on the priority between continuing capital programs and the creation of new assets. The future impact of current capital design funds should be considered. •Changes in Current Levels of Municipal and School Service: what level of services the community can accept forgoing to avoid an override or changes to other budget guidelines Town of Lexington FY2027 Preliminary Budget 22 Future Policy Discussion Points •Funding Large Capital Projects post LHS (potential future debt exclusions): Long term capital planning improvements include East Lexington Fire Station Reconstruction, Clark Middle School HVAC, Library HVAC, and Town Office Building •Renewable Energy Rebates: develop guidelines for redeploying rebate revenue or savings generated by investment in renewable energy •Pension & OPEB Funding: develop guidelines for redeploying resources if and when the Pension liability is fully funded, including guidelines for maintaining fully funded status. •Potential New Fee Revenue: ◦Stormwater Enterprise - if the new EPA permit requires significant investment in stormwater management this may be necessary to comply ◦Composting & Bulky/White Good Removal - may be necessary if the cost of existing services continues to increase or to add new services such as composting ◦Other potential revenue sources to be identified by staff in 2027 •Planning for changes in population and shift in tax base between Residential and Commercial properties •Operating Override: past guidance has been to balance the budget without an operating override; staff continue with this assumption Town of Lexington FY2027 Preliminary Budget 23 Next Steps •January 29, 2026- February 9, 2026 - Municipal and School staff to respond to questions on operating and capital budgets; ongoing budget deliberations •February 9, 2026 - Select Board to vote FY2027 recommended budget •On or Before February 27, 2026 - The final FY2027 recommended budget will be distributed electronically to the Select Board, Appropriation Committee, Capital Expenditures Committee and Town Meeting Members. Printed copies to follow by request. •March 30, 2026 - 2026 Annual Town Meeting Begins and may consider financial articles FY 2027 Superintendent’s Recommended Budget = $151,235,664 1 New Students We continue to receive students new to Lexington with varied needs, including students experiencing homelessness, immigrant families, and students with no formal schooling. To present a balanced budget to the Budget Summit, in addition to substantially increasing the use of the Circuit Breaker Fund Balance, we identified approximately $3.7M in reductions to cover the combined shortfall, including: ●Further reductions to the “high risk” list after a similar reductions in FY25 and FY26 ($1.5M) ●Reduction of 14.5 FTE from current staffing level ($950,000) ●Increased use of the transportation revolving account (up to +$150,000) ●Elimination of unallocated positions used to address in-year needs ($1,080,000) Other steps under consideration: ●Use of up to $4.4M of in-year circuit breaker funding ●Potential reduction of 20-30 FTEs ●Possible increase in user fees for transportation and athletics FY27 Superintendent’s Budget Recommendation