Mexico Public Schools Board of Education members heard about budget issues for 2025-26 and received an update on school bond projects at their May 20 meeting.

In the draft message and revenue projections given to the board, trustees learned that the budget for the 2025-2026 school year was developed “under unique circumstances, as the district will operate for the first time in several years without federal Covid relief funds. The budget calls for deficit spending in operations and capital improvement funds. The deficit in the operating budget is driven by the board policy goal of maintaining a fund balance between 20% and 30%.”

“This next year will be the very first year for most districts in Missouri to operate without any of the Covid relief funds, and it’s been a significant amount of revenue,” Superintendent Troy Lentz told trustees. “Those revenues here, for the most part, have been allowed to build up fund balances that the district wants to spend down to get down to between 20% and 30%. The goal is to be able to find a way to hover, and for our district what would mean about $7 million in the bank for operating. That would put us between 20-30%.”

While losing Covid federal relief affected revenues, among other factors, there were several matters that affected expenditure projections for the operating budget, including, among other factors, implementation of the step increase on certificated salary schedule for a $700 increase to base teacher pay and an increase in board paid health insurance to $709.23 per month. Officials said the proposed budget seeks to meet short-term district goals while providing flexibility in future budget years as district leaders strive to operate within the board fund balance policy.  

Compensation schedules were designed to recruit and retain staff while spending down reserves while allowing future budgets to responsibly adjust as reserves drop below 30%.

In an interview with the Ledger, Lentz said the district is on good footing and that the increases in state funding help the district avoid having an “immediate fiscal cliff, so to speak.” 

In other developments, Lentz said in his report that many of the projects approved by voters in the April 2024 bond election will be underway on campuses this summer, as, for example, work on the McMillan Early Learning Center playground will begin with the goal of finishing the playground before school begins.  

“There’s going to be a lot of activity,” Lentz said about what will happen around the district, adding that there could be deviations from the plan based on weather, scheduling conflicts or materials arriving in a different time than expected. He said the district will try to communicate when it can.

McMillan will have the best flexibility because it does not have summer school. Among the projects to be conducted: Roof and HVAC work at Eugene Field Elementary School, a new playground surface at Hawthorne Elementary and HVAC work at the middle and high schools.

Lentz spoke about the Volunteer Generation Fund Grant, which Mexico students benefited from during the 2024-2025 school year. He said most of the federal grants that are active in the district are still active in spite of conversations about federal Department of Education grants. 

The VGFD has been “brought to a close,” Lentz said. The grant funded Link Crew, and the district planned to use the grant to support Where Everybody Belongs next year. C2C intends to support the stipend and supplies for Link Crew and WEB - which are student mentorship programs - with the Full Service Grant for the 2025-2026 school year. But there will be no additional funds for training or support, Lentz’s report said.

Also at the meeting, the board heard from resident Brad Brett, who spoke about cellphone usage in schools and discussed a book called “The Anxious Generation” by Jonathan Haidt. Senate Bill 68, approved by lawmakers and awaiting the governor’s signature, would restrict the use of cellphones during the entire school day, and schools would have to determine a plan on implementation. Brett encouraged some rules about cellphone usage that he thought could be conducted here.

Two educators from McMillan Early Learning Center - Janet Tate, a preK teacher, and Casey Echelmeier, assistant principal - were recognized with Golden Apple awards as they are retiring and received commendations for their work.

After some discussion about continuing consideration from the April 15 board meeting regarding full-time preschool for children of all Mexico Public Schools certified and support staff, the board took no action.  Lentz said later in an email the district will continue with current practice of half day preK for all students.

Among other business, the board also approved a bid award and contract for tennis courts to Next Level Construction LLC. for $2,375,829.