USDB board adopts FY26 budget plan allowing outreach charges to cover shortfall; staff cuts and working group planned

The Utah Schools for the Deaf and the Blind (USDB) Board approved a fiscal year 2026 budget and gave USDB authority to charge outreach services as necessary to help maintain a balanced budget, after a financial report showed revenues of $50,660,000 and expenditures of $51,230,000 for the reporting period, leaving an estimated shortfall.

Vicky Summers, USDB financial manager, presented the 10-period financial report ending April 30, 2025: “For these 10 periods, we have revenues totaling 50,660,000.00, and our expenditures are 51,230,000.00. This does leave us a deficit of expenditures over revenues of $572,000.” Summers told the board final figures would not be available until the last payroll of fiscal year 2025 runs in July.

Board members and staff said USDB faces a larger structural gap in next year’s appropriations. Staff described a projected shortfall of about $5,800,000 against usual operations and presented options including charging local education agencies (LEAs) for outreach services (on a sliding scale), reducing positions and convening a legislatively required working group to examine long-term solutions.

Deputy Superintendent of Operations Scott Jones told the board that passing a budget now would not prevent the working committee from doing its statutorily required work: "You can proceed with setting the budget, but ... the working committee ... can still work even if you do this thing on because we would provide them the information and move together towards that solution." He and other staff emphasized that adopting a budget is consistent with following budgetary procedures and that any revenue collection from LEAs would still be constrained by the legislature’s appropriations for dedicated credit.

Board discussion focused on how to limit harm to students and retain highly specialized staff. Michelle (associate) and Superintendent Coleman said USDB does not want to charge districts but may do so to preserve positions and services. The board was repeatedly reminded that federally required individualized education program (IEP) services must be provided by some party; if USDB cannot provide them, the responsibility would revert to districts.

Board members pressed staff for specifics. Summers and staff provided fund balances: enrichment funds just under $802,000, donated funds $276,000, and the education foundation fund at “1.2” (as stated in the report). Staff said charging 50% of outreach services statewide would bring in approximately $3.6 million; charging 100% would bring in about $7.2 million — figures staff used to illustrate the scale compared with the $5.8 million shortfall.

During debate, Member Earl and others expressed concerns about timing, equity and procedure. Several board members asked that the working group consider equity and the administrative burden of invoicing small districts. Member Carrie asked how long a surcharge might persist; staff said it is anticipated to be necessary for FY 2026 but the working group should examine longer-term solutions.

The board first voted on an amended proposal giving USDB permission to charge outreach services “as necessary to maintain a balanced budget for fiscal year 20 26.” That amendment passed 8–5. The board then approved the final FY26 budget with the authority to charge outreach services; the final approval vote recorded 11 in favor and 2 opposed.

In discussion and follow-up, staff warned that without additional revenue USDB would need to eliminate about 53 positions (23 of them currently vacant) to align spending with the appropriation. Staff also noted a dedicated-credit appropriation cap ($5,100,000 was cited as the currently appropriated maximum for collecting LEA revenue), meaning additional legislative action could be necessary to expand the amount USDB is allowed to capture from districts.

Board members named three board representatives to the USDB working group (Member Brenton, Member Earl and Vice Chair Wood) and said the group would meet to work on transportation, safety and outreach services. Staff indicated they would return with more detailed impact analyses as closeout numbers become final in July and as the working group develops recommendations.

For now, the board’s action gives USDB limited flexibility to generate revenue through outreach fees while the working group and staff pursue longer-term funding solutions and finalize fiscal-year closeout numbers.