Sweetwater County School District No. 2 approves preliminary 2025–26 budget amid drops in assessed valuation

Sweetwater County School District No. 2’s board approved a $62,036,025 preliminary budget for fiscal year 2025–26 on a voice vote after a presentation on revenues, reserves and anticipated state and local funding changes.

Budget presenter Katie Harter outlined the district’s revenue and expense projections and asked the board for approval. "Revenues are projected to raise 1,072,520 based on the projected decrease of the district's assessed valuation. With the interest it's a total revenue of 1,152,520," Harter said. She described recurring expenses of $971,475, community grants of $250,288 and a fund balance of $3,132,679 in the rec board account. Harter concluded, "I ask for your approval for the preliminary budget." The board approved the preliminary budget by voice vote.

The budget presentation placed emphasis on declines in assessed valuation and how state funding mechanisms affect the district. Harter said the district is on the "bubble" in Wyoming's model funding: if local revenues exceed the state's guarantee, the district faces recapture payments back to the Wyoming Department of Education; if not, the district would receive entitlement funding. She noted a current decrease in average daily membership of 31 students and a health insurance premium increase of 3% for the coming year.

Board discussion focused on the local effects of residential property tax relief and mineral production declines. One trustee warned that cuts to the district's recreation mill (rec mill) and BOCES revenue would hit local programs: "The rec mill generates 1,152,000. If we take a 20% cut, that's $230,000 ... we're gonna be using some other funds or we're gonna be cutting programs," the trustee said during the meeting, urging trustees to contact legislators. Trustees and staff said reserves would be used this year to preserve programs while they continue to monitor final county assessed valuation numbers and legislative outcomes.

The preliminary budget package presented to the board also included several targeted amendments approved earlier in the meeting: a debt service amendment transferring delayed tax collections into aquatic-center accounts for pool maintenance; a capital projects amendment to add funds for the Wolves Stadium scoreboard; and a special revenue amendment to add unanticipated grant revenues, including TSI (Targeted Support and Improvement) and mental-health grant money. Harter said the district is projecting to be at approximately 19.36% in reserves on June 30, 2025, above the 15% reserve requirement the district must maintain by June 30, 2028 under current guidance.

Board members asked staff to continue pursuing grant opportunities and to keep trustees apprised of final county valuation numbers in June. The board's approval of the preliminary budget enables public notice and the district's next budget steps while final figures are finalized later this month.

The district also asked the board to note that the allowable square footage for major maintenance increased from 15% to 35% for fiscal 2026 only, which will raise available major maintenance funding for the year. Harter also reported that House Bill 18 removed some CTE funding from the model, restricting its use to supplies and materials only for the coming year.