Keene School District Proposes $83.4 Million Budget Amid Enrollment Decline and Rising Outside Costs

Administrators are recommending a budget totaling $83,426,334, an increase of about $3.7 million, or 4.7 percent, over the current year. District leaders emphasize that the increase is largely driven by fixed and contractual expenses rather than new initiatives, including out-of-district tuition, transportation, salaries, health insurance premiums and substitute staffing.

If adopted as proposed, the budget would increase the school portion of the local property tax rate by an estimated $2.88 per $1,000 of assessed value. That equates to roughly $576 per year for a home assessed at $200,000, based on district projections. Officials note the tax impact is heightened by a drop in non-property tax revenues, including lower state education aid and a smaller anticipated surplus.

Staffing changes are a central component of the proposal as enrollment continues to trend downward. Projected K–12 enrollment for next year is 2,624 students, compared to 2,857 this year and more than 3,300 five years ago. Including Jonathan Daniels Preschool and students attending the Cheshire Career Center, total projected enrollment in Keene schools is 2,734.

To align staffing with those numbers, the proposed budget reduces 10 full-time and three part-time positions across the district, while adding eight positions in targeted support areas. At the elementary level, two general education teaching positions would be eliminated, offset by the addition of five support staff. Keene Middle School would see reductions including a school adjustment counselor position and a partial reduction in Spanish instruction, along with shifts in related services. Keene High School and the Cheshire Career Center are slated for multiple position reductions due to declining enrollment, with some staffing reallocated between the two schools.

Salaries and benefits remain the largest single expense, totaling about $53.5 million. Contractual salary and benefit increases approved by voters account for more than $1.2 million of the increase, while health insurance costs alone are projected to rise by nearly $570,000. Overall, administrators estimate that about two-thirds of the total budget increase is tied to out-of-district expenses, with the remaining third driven by contractual salary and benefit obligations.

On the revenue side, tuition from students attending Keene schools from surrounding communities is expected to rise modestly, though it will represent a slightly smaller share of overall revenue. State education aid is projected to decline by more than $1.6 million, a reduction administrators attribute primarily to enrollment losses. The district also plans to use less unreserved fund balance than in prior years, further shifting the burden to property taxes.

The Board of Education’s finance committee is scheduled to meet Saturday to review the proposal and make a recommendation. The full board is expected to vote shortly thereafter on a budget figure to bring forward for public input.

A public hearing on the proposed budget is scheduled for Tuesday, Jan. 20, at 7 p.m. at the Jonathan Daniels Professional Development Building, 227 Maple Ave. Residents will have the opportunity to ask questions and share feedback before the budget is finalized for the ballot. The meeting will also be livestreamed through the district’s website for those unable to attend in person.