The Steelville R-3 Board of Education approved the fiscal budget for the upcoming 2026-27 school year.

Superintendent Steve Vetter brought the proposed budget into discussion.

“It talks about our total estimated revenue. I would note that as I said earlier (it’s at) $18 million. Keep in mind that $6 million is for our bond issue,” said Vetter.

The bond that voters approved on April 7 will allow the district to remove asbestos, set up energy efficient windows, add an exterior wall and install new HVAC at the elementary school. The bond will also create additional parking at the high school lot and replace the gym floor.

Revenue comes from four main sources for the district. Local sources provide 43 percent ($5.389 million), state sources also come in at 43 percent ($5.3 million), federal sources are at 11 percent ($1.3 million) and county funding comes in at three percent ($405,000).

The total estimated expenditures is $14.387 million for the 2026-27 fiscal year. The biggest expenditure is allocated to salaries and benefits, which comprises 62 percent of the funds from expenditures.

Vetter said he expects $1.6 million to be distributed toward the bond this fiscal year. The projected fund balance is estimated at $6.4 million based on expenditures and revenues.

Vetter added a page on the budget, updating enrollment numbers from this previous school year.

“As we go back historically all the way to 2012-13, our enrollment’s pretty steadily declined,” said Vetter. “I think that’s because you’re seeing a decrease in the family size. I think that directly impacts it.”

He said the declining enrollment numbers have caused a decrease in revenue. This year’s enrollment was at 805 students and the 2024-25 school year had 852 students.

“Those things are not working in your favor,” said Vetter.

The state adequacy target (SAT) fund will be $6,900 for the 2026-27 fiscal year. Vetter said he doesn’t anticipate the state to fully fund the SAT. He adjusted the SAT Revenue to be at $6,750 for the district.

“Two years ago I guess we increased our salary. We still take advantage of the baseline salary grant that DESE puts out,” said Vetter. “We’ll make sure that we get in on that and utilize it again.”

Vetter said if the bond wasn’t included in the budget the district would be operating at a $300,000 deficit. He said that he will meet with people in the district to see how they’re utilizing funds and make sure that the budget is balanced.

“We have to pay attention to that,” said Vetter.

Kevin Green made the motion to approve the budget, which was seconded by member Jacob Becker and passed with a 4-0 vote.

In other news, a propane and fuel bid was approved with MFA in the estimated amount of $23,746 for the upcoming school year. The board received two bids, MFA and Boland ($23,823). Vetter recommended that the board move forward with MFA because they provided the lowest bid.

Becker made a motion to approve the bid as presented, which passed with a 4-0 vote.

The next board meeting will be at 6 p.m. on July 23 at the Early Childhood Center.