South Bend Community Schools is preparing for a tighter budget in 2027.

District officials say they’re expecting to lose about 2.1 million dollars in property tax revenue because of changes in state law.

The district is proposing a budget roughly 5.5 million dollars smaller than this year’s spending plan. However, the Chief Financial Officer says the district remains financially stable and expects to balance its budget without reducing classroom investments.

Officials also acknowledged that more than 30 percent of money set aside for classroom supplies has consistently gone unused, with those funds potentially helping bolster district reserves.