WESTPHALIA — Fatima school board members approved a deficit budget for the 2026-27 fiscal year that included a $500 base-pay increase for all salaried employees. The new budget estimated revenues at $10,868,365 and operating expenses at $10,183,253.75 plus Capital Project expenses totaling $1,259,650.

“This budget does reflect decreased funding and increased operational expenses along with a decrease in federal and state funding, based on an estimated $1.25 million loss of revenue over the next three years,” Superintendent John Kitchens explained at the board’s June meeting.

Kitchens added that the district was able to give salaried staff raises because of the cutbacks made in other areas.

“I want teachers and staff to know that when we say no on some expenditures this year, that was to keep the money in their pocket,” Kitchens said.

The 2026-27 budget estimates the following revenue line items: current taxes ($4,921,700), delinquent taxes ($55,000), sales tax - Prop C ($1,060,000), intangible taxes ($30), M & M surtax ($66,750), in lieu of tax ($3,825), earnings on investments ($223,850), student meals ($160,000), adult meals ($7,200), non-program meals ($31,200), sport admission fees ($31,000), preschool tuition ($310,000), fines, forfeit, etc. ($15,000), railroad utility ($683,000), basic formula ($1,770,000), transportation revenue ($400,000), State Early Childhood ($90,000), Classroom Trust Fund ($400,000), Early Childhood and Parents As Teachers screening ($5,100), State Vocational Aid ($35,000), Baseline Salary Grant ($4,285), Public Placement Idea ($5,500), High Needs Special Ed ($80,000), Medicaid ($28,500), High Needs Special Ed Fund-Federal ($6,000), IDEA Entitlement Fund ($250,000), Federal Early Childhood ($28,500), Federal Food Service ($90,000), Federal Breakfast ($18,500), After School Snack ($675), Title 1 ($60,000), Title IV.A ($10,000), and Title II.A ($15,750).

While the expenses were broken out by line, it was not clear which areas had reduced savings over last year’s budget. The following are general totals for expenses: salaries ($5,566,973.75), retirement ($700,010), OASDI Insurance ($16,370), FICA ($87,465), medical insurance ($769,460), Medicare ($218,795), life insurance ($17,900), Workers’ Comp insurance ($8,450), testing ($28,550), travel ($65,200), general supplies ($127,300), library books ($10,200), tech supplies ($98,100), therapy services ($74,980), food service ($240,000), preschool ($1,500), fees and reimbursements ($22,850), financial audit ($8,800) textbooks ($55,000), employee insurance ($28,980), extra-duty stipends ($168,020), in-service meals ($2,400), athletic officials ($52,000), drug testing and physicals ($4,950), other services ($5,800), athletic supplies ($50,000), professional development ($200), other district tuition ($72,000), legal services ($2,000), election ($8,000), property insurance ($263,000), advertising ($3,000), MSBA ($9,500), copy machine ($46,800), repairs and maintenance ($52,900), water/sewer ($14,000), electric ($115,000), LP gas ($50,000), fuel ($56,050), private agencies ($186,650), administrative services ($400), graduation ($2,250), Medicaid services ($5,300), trash ($15,500), telephone ($8,600), postage ($4,150), athletic grounds upkeep ($10,000), and transportation contracts ($880,000).

Kitchens praised the school board members for taking proactive steps in supporting a seven-period school day that allowed the district to remove two teaching positions, and other measures they approved to make it possible to cut district expenses.