What is “Level Service” and Why is a “Level Service” Budget So High? Critical Budget Drivers and Uncontrollable Costs A “Level Service” budget maintains the same programs, staffing levels, and services available in FY26 for FY27, adjusted for enrollment. While it introduces no new programs, it still costs more due to inflationary pressures and contractual obligations. The primary cost drivers in the FY27 cycle are contractual salary increases and rising benefit costs, both of which are growing at rates that outpace standard inflation.
Benefits Growth Analysis Benefit Type
FY26
FY27
% Increase
Health Insurance
$43,155,275
$47,406,801
9.9%
Medicare Payroll Tax
$3,015,254
$3,184,440
5.6%
Total Benefits
$47,849,220
$52,259,009
9.2%
Non-Personnel Expense Trends Historically, NPS managed non-personnel growth at a modest 3.0% (FY19–FY26). However, specific categories are now rising rapidly: Contract Services (30.3%) - Highest increase mainly due to substitutes Tuition (18.5%) : More students coupled with increased rates and student needs Utilities (15.4%) : Driven by higher delivery and supply rates as well as additional consumption due to larger school campuses and universal air conditioning requirements.
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