School board approves Inter-Lakes operating budget, up 5.7%

MEREDITH — Inter-Lakes School District voters will have the chance to weigh in on the proposed budget and warrant articles, after the school board voted to approve an operating budget with a 5.7%, ahead of the public hearing on Wednesday, Feb. 4.

If warrant articles regarding the teachers union agreement and athletic field lights are approved at the district meeting on Wednesday, March 4, there would be a 7.6% total budget increase over last year.

The school board voted 7-0 at the Jan. 20 meeting to move the proposed operating budget of $37.3 million to Warrant Article 5. This reflects an increase of $2 million over last year’s budget of $35.3 million.

Article 3 will ask voters to approve the collective bargaining agreement between the district and the Inter-Lakes Education Association, which calls for an estimated increase of $458,794 for staff salaries and benefits for 2026-27, 1.3% over last year.

Voters will also be asked, in Article 4, to authorize the school board to hold one special meeting to address items in Article 3, if defeated.

In Article 6, voters will be asked to raise $359,000 for lighting at the athletic field, with $160,000 coming from funds already donated. The difference of an estimated $199,000 will come from taxation. This represents a 0.6% increase over last year.

Superintendent Mary Moriarty said this article will likely need to be amended on the floor, hopefully with more up-to-date fundraising totals.

According to information provided by Moriarty, special education costs are a key increase in the budget, with a total increase of $915,694, which also includes $271,929 in transportation costs. The transportation costs alone went up by almost 50% due to a need for out-of-district placements.

Health and dental costs make up $557,654 of the increase, which is a 9.2% increase over last year. Health insurance rates went up 11.8%, and dental rates increased 4.4%. This is the third straight year health insurance costs have risen by double-digits.

Curriculum and development increased by $159,982, and facilities increased by $129,141. Transportation and the office of the principal also showed increases of $91,328, and $91,293, respectively.

Moriarty said the budget started with a proposed increase of 9.6%, since whittled down by $1.4 million in reductions. Two are reductions of staff at the elementary school, including reducing 2 classroom paraeducators to cut $97,969, and reducing the inclusion specialist in Special Education Professional Services to cut $92,500. Another $95,329 was cut by reducing the Inter-Lakes Middle/High School Student Services Coordinator from full time to 0.60 full-time equivalent.

A reduction of $43,600 comes from cutting 1 paraeducator library assistant, and $6,090 was reduced by cutting robotics camp teachers. Pellet fuel at the elementary school and high school was reduced by $10,000 each, and district-wide plant supplies were cut by $25,000.

Other key reductions from the start of the budget process include $100,000 for paving and sidewalk replacements at the elementary school; $85,000 for Sandwich Central School bathroom improvements and instead recommending a future bonding project; and $156,060 by reducing district-wide individualized special education transport.

There were also $647,983 in reductions by using the 2025-26 year-end fund balance.

Moriarty also proposed using $87,000 from a health reserve account which she said was set up many years ago to address potential costs related to health insurance, but was not used. She said it has been put aside to be used when needed, but hasn’t up to this point. If used, it would have changed the increase to 5.5%.

“It is one way you can provide some relief for the budget,” Moriarty said.

Board member Duncan Porter-Zuckerman, of Sandwich, said his concern was if that account is used now, it could create a cliff. He would support using some, but not all, of it. Board member Nancy Starmer, of Sandwich, said they have never used it to offset an extremely high increase in health insurance, and other board members noted there is a bit of an unknown on how much insurance rates could continue to increase.

Board member Abe Garon, of Meredith, pointed out if it were used, it would only be a matter of about 0.2%.

Chair Charley Hanson, of Center Harbor, said there are some voters who want the board to pull every lever they can, but agreed maybe they should be careful not to use it all.

“There are good reasons to keep that there, too,” Hanson said. “It’s just a little bit of money. It’s not a lot of money, but pennies make dollars.”

Some board members felt that it should be used sparingly, or not at all, at this time.

“I would almost say don’t use it at all, save it until after we go through our health insurance review,” said board member Jim Locke, of Center Harbor. “And the fact that we are proposing a $359,000 Article 6 for field lights, and we’re looking at pulling $87,000 from a health trust, doesn’t seem to jive with me.”

Board member Edward Twaddell, of Meredith, agreed with Locke, asking whether there is anything specifically driving them to use it.

“I think the answer is 'no,'” Twaddell said. “Why not wait a year, garner additional facts and information as we go through the [cost-benefit analysis] process?”

The board decided not to use the health reserve account.

The board also decided to authorize Moriarty and the district's attorney to create wording for Article 7 about becoming an “open enrollment school.” The board hopes zero students will enroll elsewhere, but expects one to come in. This means taxpayers wouldn’t be paying open enrollment tuition to another district, but allows it to receive one student from another.

“The board looks at this as a listening session, so articles can be adjusted,” Moriarty said.

The budget has a total operating revenue decrease of $335,292, making it a combined net assessment increase of $2.4 million.

If Articles 3, 5 and 6 pass, the estimated tax impact for Center Harbor is $0.53, Meredith is $0.53, and Sandwich is $0.62, with a total district estimated impact of $1.66.

This means for every $100,000 of assessed valuation, taxes will have an estimated increase of $51.28 for Center Harbor residents, $52.84 for those in Meredith, and $61.83 for Sandwich taxpayers.

A house assessed at $500,000 would see an increase of $256.41 in Center Harbor, $264.19 in Meredith, and $309.13 in Sandwich.

Business Administrator Ashley Dolloff stressed this is only an estimate, and does not set the tax rate.

The budget and warrant are subject to change until the Wednesday, March 4 school district meeting, where the articles are voted on. Moriarty said the Tuesday following the public hearing is typically when the board votes to finalize the warrant. Dolloff added the official posting is on Tuesday, Feb. 17.

The public hearing about the proposed district budget and warrant will be held at 6 p.m. on Wednesday, Feb. 4, at the Inter-Lakes High School auditorium.