During the recent Board Work Session on August 25, 2025, Hudson Schools officials presented a comprehensive overview of the district's budget for the upcoming year, highlighting both challenges and strategic adjustments. The meeting, led by Bonnie, focused on the 2025 annual report, which included updates on the district's financial health and operational plans.

A key point of discussion was the anticipated revenue changes due to state budget adjustments. The state has set the revenue limit calculation at an increase of $325 per pupil, while state aid per pupil remains unchanged at $742. However, the district is projected to lose approximately $750,000 in equalization aid, primarily due to declining enrollment and increased property values. This loss underscores the financial challenges faced by the district, particularly as it navigates a property wealth status that affects aid distribution.

The board also addressed significant budget reductions made over the past three years, totaling around $2.7 million, with $842,000 in cuts made in the last year alone. These reductions are part of ongoing efforts to align expenditures with revenue, especially in light of the district's declining enrollment figures.

In terms of property values, the district reported a 4.4% increase this year, down from 6.69% last year, which is below the state average of 8.07%. This trend may further impact the district's financial landscape, as property value growth is a critical factor in funding.

The board confirmed plans to relocate the district office to the middle school, a move aimed at reducing the district's footprint and operational costs. Additionally, the district is preparing to close on the purchase of the UU property, which is expected to enhance community resources.

The budget proposal includes a projected operating deficit of $13.7 million, attributed to the allocation of fund balance for ongoing construction projects. The board emphasized that this deficit is a strategic decision to complete essential improvements rather than a sign of financial instability.

As the district prepares for the upcoming fiscal year, the board remains committed to transparency and community engagement, with plans to make detailed budget documents available for public review. The final budget allocations will be confirmed on October 15, providing a clearer picture of the district's financial outlook moving forward.