Harrison School District 2 projects $4.6M shortfall in proposed 2025–26 budget; board to vote June 5

Corey Arcuri, chief financial officer for Harrison School District 2, told the school board Thursday that the district’s proposed fiscal 2025–26 budget projects about $4.6 million more in expenditures than revenues and includes staffing reductions, program cuts and targeted pay increases for licensed staff and educational support professionals (ESPs).

Arcuri said the district entered the 2024–25 school year facing a roughly $10.6 million gap between budgeted expenses and revenue and, after midyear adjustments and cuts, projects to close that to about $3.7 million by the end of the year. The proposed budget presented May 15 shows a remaining projected shortfall of about $4.6 million for next year, he said. The board will consider adoption at its June 5 meeting.

The proposed budget assumes a districtwide decline of roughly 242 students (a four‑year average used for projections) and a state funding increase that Arcuri estimated would raise state support by about $2.9 million next year. Local property tax revenue includes two mill levies: Arcuri said the district projects roughly $15.5 million in voter‑approved override revenue next year, with about $6 million from an earlier override and roughly $9 million from the mill levy passed this year.

Why this matters: payroll and benefits make up roughly 76–77% of the general fund. The district’s plan balances limited reserves, state funding movements and continued emphasis on classroom and student supports while shrinking or eliminating other programs.

Key changes and assumptions

- Salary and benefits: The budget sets a 2% base increase for licensed staff and ESPs, plus an additional 3% for returning staff, producing a total 5% increase for those returning; no raises are budgeted for other employee groups. Arcuri said those choices reflect the mill levy language and limited available funds.

- Staff reductions: The process produced a districtwide net reduction of about 62 full‑time equivalent positions; 42 of those reductions affect the general fund. Arcuri described the changes as “rightsizing” schools to current student counts and said principals reviewed class‑by‑class staffing to preserve instructional quality.

- Program changes: The draft budget discontinues before‑ and after‑school programming previously funded at about $3 million and reduces nonpayroll expenditures by about $1.7 million. It also reduces supplies and equipment by roughly $1.6–$1.7 million.

- Reserves and risk: The district’s reserve balance stood at about $30 million at the time of presentation and is projected to be roughly $27 million at the end of next year if the current plan holds. Arcuri and board members said the board policy reserve target is 10%; state TABOR requires 3%.

- Insurance and other costs: Arcuri said property, liability, fleet and workers’ compensation insurance costs have grown (a ~37% increase over several years, or about $824,000) and highlighted the need for safety work to limit future premium growth. The district also negotiated a new medical plan that it said should reduce employee out‑of‑pocket costs.

Next steps and board comments

Arcuri said the May 15 presentation was informational; the board will be asked to vote on the appropriation at the June 5 meeting. He also said the district plans a January 2026 midyear modification after the December pupil count true‑up, a regular step that can change revenue projections. Board members praised staff for the transparency and work to reduce the deficit, and several said principals and central office staff had reviewed school budgets closely to avoid large class‑size increases.

Arcuri closed by calling the proposed budget a management tool and urged continued focus on the district’s three spending priorities: classroom instruction, district culture and community engagement.