Vermillion school board adopts 2025–26 budget, declares special-education open enrollment closed

The Vermillion School District 13‑1 School Board on July 14 approved the district’s fiscal year 2025–26 annual budget and the district’s levy requests, and the board declared the district’s special‑education department at capacity and closed special‑education open enrollments.

Board action adopted the district’s presented totals for the fiscal year running July 1, 2025, through June 30, 2026: General Fund $12,917,748; Capital Outlay Fund $3,278,175; Special Education Fund $3,361,630; Debt Service Fund $1,377,500; Food Service Program Fund $1,054,000; Enterprise Fund $176,050. The board also certified levy requests and other levy elements to county auditors as read at the meeting.

The budget matters were presented by the finance committee and district staff, who framed the budget around a modest enrollment decline and constrained revenues. The budget presentation said district enrollment used for budgeting was 1,385 students last year and the district projects 1,340 students for 2025–26. Staff told the board projected state aid includes an increase the state set at 1.25% and that the district is conservatively estimating revenues while budgeting expenditures to not exceed available resources.

District staff identified primary revenue drivers as local property taxes and state aid. Staff described revenue adjustments including: increased taxable valuation driving capital outlay property‑tax revenue; a 7% increase in taxable valuation from 2024 to 2025 noted for the district; some federal grant carryover being used in earlier years; and use of an allowed transfer from the capital outlay fund to the general fund (staff noted a planned $300,000 transfer). The budget presentation also listed federal grant changes including reductions where carryover was used and increases tied to a high‑school TSI grant that funds the JAG position and related professional development.

On the expenditure side, the budget incorporates a 2% pay increase for returning staff and adds a third‑grade teacher and a JAG coordinator at the high school. Transportation costs reflect ability to use 15% of capital‑outlay payments to support bus-related costs; the district also noted a small increase in contracted bus rates and higher travel costs for student activities. Operations and maintenance increases were attributed primarily to higher property‑insurance premiums, which staff said have grown between about 13% and 30% in recent years and to costs associated with the new elementary school building.

Staff reported fund‑balance targets and planned use of reserves in several funds. For the general fund the packet and presentation said the district budgeted approximately $404,000 of reserves to be used (described by staff as around 3% of the general‑fund total, a target level). The special‑education fund included a planned use of about $475,000 of reserves; staff explained that special‑education state aid is subject to a roughly one‑year lag and the district’s current fund balance affects next year’s special‑education aid. Food service fund reserves were discussed at roughly $45,000, which staff said they will monitor.

After the budget presentation the board voted to adopt the budget and levy requests (motion to adopt moved by Jacob, second by Carol; motion passed). Later in the meeting, during new business, the board formally declared the special‑education department to be at capacity and directed that the district will not accept new special‑education open‑enrollment requests at this time. The motion to declare the special‑education department at capacity and close special‑education open enrollments was moved and second during the board’s approval of several organizational items and passed in the public meeting.

The board packet and discussion also noted several one‑time and capital items included in the capital‑outlay budget, such as theatre house lights, irrigation upgrades, classroom furnishings, and an athletic‑facility visual display project partially supported by the Vermillion Athletic Boosters and the Vermillion Public School Foundation. Staff emphasized multi‑year planning for large, one‑time capital purchases and said the capital‑outlay fund showed flexibility due in part to prior project completion.

What the board approved - Adopted the 2025–26 annual budget totals as read at the meeting and certified levy requests to county auditors. - Declared the special‑education program at capacity and closed special‑education open enrollments until capacity changes.

What remains for staff and the board - Staff will continue routine monitoring of fund balances, grant carryover, and enrollment trends. - The board requested continued attention to special‑education staffing; staff reported a current active vacancy for an additional special‑education teacher that remains advertised.

Speakers - Kevin Kosher, business manager (presented depository/banking, bond and procedural items) - Jacob (finance committee presenter) - Doctor Elvey, superintendent - Rachel Olsen, board president - Carol Ward, board member - Jacob Skelton, board member - Mark Winegar, board member - Mike Phelan, board member

Authorities - statute: South Dakota Codified Law 13-11-2 (referenced for budget publication), referenced_by: ["budget adoption"] - statute: South Dakota Codified Law 1-25-1 (open‑meetings requirement cited during organization/announcements), referenced_by: ["budget hearing","organization meeting"] - other: South Dakota High School Activities Association (policies referenced by staff for sport physicals), referenced_by: ["policy changes noting duplication"]

Actions - motion: "Adopt the proposed budget and changes thereto to be its annual budget for the fiscal year 07/01/2025 through 06/30/2026." mover: "Jacob" second: "Carol" vote_record: [] outcome: "approved" notes: "Adopted budget totals and certified levies as read." identifiers: {} - motion: "Declare the special‑education department at capacity and close special‑education open enrollments." mover: "Jacob" second: "Mark" vote_record: [] outcome: "approved" notes: "Staff: special‑education vacancies remain; program will not accept new open‑enrollment special‑education students until capacity changes."

Discussion vs. decision - Discussion points: enrollment decline; revenue drivers (property tax and state aid increases); insurance premium increases; grant carryover; capital projects. - Directions: staff to monitor reserves, pursue filling special‑education vacancy, implement capital projects as budgeted. - Decisions: budget adopted; special‑education open enrollment closed.

Clarifying details - "budget_enrollment_last_year": 1,385 (stated) - "budget_enrollment_projection": 1,340 (stated) - "general_fund_budget_total": 12,917,748 - "capital_outlay_budget_total": 3,278,175 - "special_education_budget_total": 3,361,630 - "debt_service_budget_total": 1,377,500 - "food_service_budget_total": 1,054,000 - "enterprise_fund_total": 176,050 - "planned_general_fund_reserves_use": 404000 (described as about 3% target) - "planned_special_education_reserves_use": 475000 - "noted_transfer_from_capital_outlay_to_general": 300000 (stated in presentation) - "property_tax_valuation_increase": 7% (from 24 to 25, stated)

Proper names - {"name":"Vermillion School District 13-1","type":"agency"} - {"name":"Vermillion Public School Foundation","type":"organization"} - {"name":"Vermillion Athletic Boosters","type":"organization"} - {"name":"Johnson Controls","type":"business"}

Community relevance - geographies: ["Vermillion, SD","Clay County, SD","Union County, SD"] - funding_sources: ["local property taxes","state aid","federal grants (ESSER, TSI, COPS, E‑Rate)"] - impact_groups: ["students in Vermillion School District","special‑education students","taxpayers"]

Meeting context - engagement_level: {"speakers_count":8,"duration_minutes":120,"items_count":20} - implementation_risk: "medium" - history: [{"date":"2024-06-09","note":"Minutes referenced in consent agenda."}]

searchable_tags:["budget","levy","special education","capital outlay","Vermillion"]

provenance:{"transcript_segments":[{"block_id":"s63.11","local_start":0,"local_end":245,"evidence_excerpt":"So, just reviewing the budget, we'll have some slides up that'll have, the budget itself. But just as a reminder, sorry about that. So just as a reminder, the budget is split into, 6 different categories, and so we'll have them on the, the screen here and go through, each of them. Any questions, certainly lehi us know, but that'll, explain kind of the incoming revenue for the district to that particular fund and then the money going out, which will be the expenditures for each of the different categories.","tc_start":"00:01:03","reason_code":"topicintro"},{"block_id":"s1886.0651","local_start":0,"local_end":220,"evidence_excerpt":"We, went over the specifics of the budget, at the budget hearing. Thank you to our finance committee for all of the help, presenting that and on the decision making as we went through that process. I will read the motion here that we would be required to have to both pass the budget and to set the levies for the upcoming year to, meet all the revenues that that we have outlined in our budget.","tc_start":"00:31:26","reason_code":"topicfinish"}]},

salience:{"overall":0.88,"overall_justification":"Adoption of an annual school budget and levies sets district spending levels and taxes for the coming year; impacts staffing, programs, and taxpayers.","impact_scope":"local","impact_scope_justification":"Directly affects Vermillion School District households and property taxpayers.","attention_level":"high","attention_level_justification":"Budget adoption and special‑education capacity decisions are time‑sensitive and have immediate operational implications."},

engagement_forecast:{"newsworthiness":{"national":0.05,"regional":0.20,"local":0.90,"justification":"Local fiscal policy and special‑education capacity are primarily of local interest; limited regional relevance."},"notify_recommendation":{"audience":"city","reason":"Local taxpayers and families with students should be notified about budget adoption, levy requests, and special‑education capacity closure.","justification":"High local impact on services and taxes."}}},{