As we prepare for the 2025–2026 school year, Hillsboro R-3 School District is proud to share a fiscally responsible and student-focused budget that aligns with our mission to educate and inspire the learners of today and the leaders of tomorrow. This year’s budget reflects our unwavering commitment to academic excellence, financial transparency, and strategic investment in people and programs that make a difference.
What Is the Operating Budget?
The operating budget includes the General Fund and the Teachers’ Fund—these are the core funds used to:
Pay salaries and benefits for educators, support staff, and administrators
Provide classroom materials, technology, and professional development
Maintain utilities, transportation services, and school operations
FY26 Operating Budget Snapshot
Category | Amount |
Revenue | $41,175,088 |
Expenditures | $41,030,890 |
Net Operating Surplus | $144,198 |
Year-End Fund Balance | $16,092,901 |
Fund Balance as % of Expenditures | 39.22% |
Our projected $144,198 surplus ensures that we are not spending more than we take in, maintaining strong reserves to weather economic change or unfunded legislative mandates from the state.
Highlights of Strategic Spending
72% of the operating budget goes toward salaries and benefits—an investment in the people who directly impact student learning every day.
Class sizes remain below the state’s maximum standards, helping maintain personalized instruction.
Increases in pay were approved across all staffing categories to remain competitive and attract top talent.
We continue to upgrade essential infrastructure, including utilities, transportation, and instructional technology, without compromising our financial health.
Investing in Educators and Staff
At Hillsboro R-3, our people are our greatest asset. That’s why we’ve taken continuous steps to attract and retain exceptional educators and staff:
Starting teacher salary has increased to $44,500—a $1,700 increase from last year, placing Hillsboro in the top three districts in Jefferson County.
The average teacher salary in FY25 was $55,022, with most educators having over 14 years of experience, and more than 63% holding a master’s degree or higher.
Additional earnings are possible through the Career Ladder Program, which rewards leadership, innovation, and extended student impact.
These decisions reflect our Strategic Goal 4.1 to remain a “destination district” for talented professionals.
Smart Financial Management for Community Impact
Our district is proud to continue demonstrating responsible stewardship of public funds:
For the fourth consecutive year, Hillsboro R-3 will lower its tax rate, already the lowest of any school district in Jefferson County by a wide margin.
Since 2019, we have reduced our general obligation bond debt from $27.7 million to just $3.38 million, with plans to reach $1.5 million by the end of FY26.
Our operating fund balance remains strong at $16.1 million, or 39.22% of annual operating expenditures, significantly above the strategic goal of 18–22%.
Despite these successes, we face new challenges. The passage of Senate Bill 3 shifts additional financial responsibilities to local taxpayers. Coupled with declining enrollment and reductions in state aid, we continue to advocate for fair funding and taxes for our community while protecting essential services for our students.
New Opportunities for Young Learners
One of the most exciting developments is the launch of the Early Childhood Program, a long-term priority of the district now realized. The 2025–2026 budget includes:
Startup investments in facilities, equipment, and staff.
The integration of Parents as Teachers (PAT) and Early Childhood Special Education (ECSE) services was previously contracted to outside providers.
The hiring of new instructional and support staff to serve our youngest learners.
This initiative highlights our strategic focus on early childhood education and student preparedness.
Capital Improvements That Support Safety and Learning
Thanks to strong reserves, strategic investments, and careful planning, several major facility upgrades are underway without needing new bond funding:
Roof restorations at the Junior High and Primary School campuses.
New school buses supported by Diesel Emissions Reduction Act (DERA) grants.
Technology upgrades district-wide, including enhanced network infrastructure and Wi-Fi access points.
Track resealing and striping, along with paving improvements, to enhance campus safety and accessibility.
Community Support, Grant Successes, and Student Enrichment
We are thankful for our partners, grants, and community who help us bring opportunities to life.
Over $60,000 in external grants were secured last year from the Jefferson Foundation and the Innovative Technology Education Fund.
A $460,000 greenhouse project was completed at the school farm, enhancing Career and Technical Education opportunities.
A new partnership with Pierce Century Family Farm offers real-world experience in agriculture and sustainability.
A Message from Dr. Jon Isaacson
"This budget is more than just numbers—it reflects our values. Every dollar has a purpose. Every investment furthers our mission to provide meaningful, future-ready learning experiences for students. I am proud of our team, grateful to our Board of Education, and thankful to the Hillsboro community that continues to support our children."
By the Numbers: FY26 Budget Snapshot
Category | Amount |
Total Revenue (All Funds) | $43.82 million |
Total Expenditures (All Funds) | $46.51 million |
Total Debt Remaining | $1.26 million |
Operating Fund Balance | $16.09 million (39.22%) |
Looking Ahead
Even amid financial and legislative challenges, Hillsboro R-3 remains dedicated to promoting literacy, workforce readiness, student leadership, mental health, and safe, modern facilities. Working together with families, staff, and community partners, we are building a bright and sustainable future for our students.
For more information, we invite you to review the full 2025–2026 Budget Book or attend our regular Board of Education meetings held on the fourth Thursday of each month.