Sweetwater 2 Board announces funding adjustments amid declining student enrollment

The Sweetwater County School District 2 (SWCSD2) held a budget workshop and board meeting on July 15, 2025, to discuss the fiscal year 2026 budget and address various financial matters affecting the district. The meeting began with an overview of the external cost adjustment funded by the state, which maintained the previous year's adjustment of $1,689,000. However, student enrollment has decreased by 46 students, prompting the district to utilize a rolling average for funding calculations.

The board reported a total appropriation of $62,550,608, with increases in the certified base salary and support base due to experience and education steps. The district continues to explore funding options, including model funding, grant funding, attritional savings, and cash reserves. The assessed valuation for Sweetwater 2 has decreased by 17.9%, impacting local tax revenue generation.

A significant point of discussion was the recapture scenario, where local resources are expected to cover 96.8% of the funding guarantee. The district anticipates a recapture situation of approximately $1,971,921, which may change based on state technical corrections and budget adjustments until March 31.

The meeting also highlighted the challenges faced in the nutrition services program, where revenues fell short of expenses, leading to a reliance on general fund subsidies. The board noted that federal reimbursements for meal programs were lower than expected, and the district is budgeting for a return to previous funding levels.

In capital projects, the district reported an increase in available funds due to legislative changes, allowing for greater square footage calculations. The pupil activity fund showed impressive fundraising results, raising nearly half a million dollars in one school year.

The board acknowledged the ongoing issue of declining enrollment, which could lead to tighter budgets in the coming years. They emphasized the need for careful financial planning and potential adjustments to staffing and programs to mitigate the impact of reduced revenue.

The meeting concluded with a call for public comments, but no attendees spoke. The board approved the agenda and consent items, setting the stage for continued discussions on the budget and financial strategies moving forward.