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Tea Area board approves FY26 budget resolution, accepts annual report and several personnel and surplus items

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Summary

The board approved the district’s final FY26 budget resolution with a planned $400,000 draw from fund balance to cover lower‑than‑expected enrollment growth, accepted the FY25 annual fiscal report, and approved surplus and personnel items. Trustees conducted a roll call on the budget resolution.

The Tea Area School District Board of Education approved the district’s final fiscal year 2026 budget resolution and took a series of routine approvals including the FY25 annual fiscal report, surplus property dispositions and multiple personnel actions, the business manager reported and the board voted.

Business staff told trustees the final FY26 budget reflects a smaller enrollment than expected. The district had budgeted growth of 25 students (from a base of 2,537), which would have reached 2,562; instead, staff reported enrollment at 2,543 (a net growth of six students relative to last year’s base). To address the revenue shortfall and insurance adjustments, the district plans to apply about $400,000 of fund balance in FY26. The business manager noted the district ended FY25 with an $800,000 increase in fund balance and said she was not concerned about the drawdown.

The board was also told the bond levy decreased by 24 cents this year and total valuation growth was reported at 8.96%. The district’s taxable valuation remains split roughly 75% Lincoln County and 25% Minnehaha County.

The board voted by roll call to adopt the budget resolution. Board members answering during the roll call included Johannessen (aye), Bennett (aye), Bridal (aye) and Meyer (aye). Several other routine motions (consent agenda approval, acceptance of the FY25 annual fiscal report submission to the South Dakota Department of Education, surplus declarations, and approvals of resignations and hires) were approved by voice votes; no opposition was recorded in the transcript.

Votes at a glance

- Motion to add executive session (personnel 1‑25‑2.1): passed (voice vote). - Motion to approve amended agenda: passed (voice vote). - Consent agenda (minutes, bills, financials): passed (voice vote). - FY26 budget resolution (final adoption): passed (roll call; recorded ayes: Johannessen, Bennett, Bridal, Meyer). - Acceptance/submission of FY25 annual fiscal report to the South Dakota Department of Education: passed (voice vote). - Surplus property (choir robes, athletic complex lights, technology equipment): passed (voice vote). - Resignations and new hires as presented: passed (voice vote). - Administrative rule waivers for three long‑term substitutes (Tyler Schwartz — middle school science; John Neeson — high school math; Tom Walder — Connections Academy): each passed (voice vote).

Board members asked questions during the financial report about enrollment trends and said the business manager will report enrollment at upcoming superintendent meetings. The motion to adopt the budget resolution will be forwarded to county auditors as required by state procedure.