Siloam Springs board backs $750 employee bonus, directs remaining unallocated funds to building fund
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Summary
At a budget workshop, the Siloam Springs School District’s leadership agreed to a $750 one-time bonus for employees and to push remaining unallocated operating balance toward the building fund and future capital projects, including a planned elementary school.
The Siloam Springs School District Board of Education at a budget workshop agreed to a $750 one-time bonus for employees and to deposit remaining unallocated operating funds into the district’s building fund as part of finalizing the 2025–26 budget.
The board’s discussion centered on balancing employee compensation and long-term facility needs after staff and district leadership reviewed the prior year’s finances and the proposed budget for 2025–26. Superintendent Terry said any money not already dedicated should be reserved “towards the new elementary school.”
Why it matters: Board members said they want to show voters and district staff that the district has been fiscally conservative while preparing for large facilities projects — including a future elementary school and planned improvements at existing schools — and to preserve options for those projects without shortchanging employee pay. Board members and district staff repeatedly framed the decision as balancing short-term compensation boosts against multi-year capital needs.
Key numbers and decisions - The district reported it expects to finish the year with roughly $9.5 million in operating carryover (rough projection discussed at the workshop) and a building fund balance of about $4 million. At the workshop the board identified roughly $2.3 million of that operating money as “not allocated.” - The board settled on a $750 one-time bonus for all employees; district staff told the board that amount would total approximately $607,000 across the payroll roster as currently budgeted. The board indicated the common practice will remain that employees on the payroll the day the board votes receive the bonus. - The board directed that unallocated dollars after the bonus be moved into the building fund and recommended investing short-term balances to earn interest until the money is needed for construction work.
Budget context and revenue considerations District leaders said revenue and expense swings helped create the current flexibility. The superintendent and business staff noted that interest income from certificates of deposit and other short-term investments outperformed budget expectations, and delinquent tax payments returned later than usual but ultimately improved collections. The superintendent also described pending reimbursements the district expects to receive but has not yet received in writing.
What board members said Shane (board member) urged prioritizing the building fund to show voters the district has planned for facility needs. Several board members said they supported both a meaningful, immediate bonus and continued savings for a new elementary school. The superintendent said the district can continue to invest idle funds in short-term Treasury instruments to increase earnings until money is needed for construction.
What’s next Terry will finalize the numbers, add any remaining open positions to the payroll calculation, and present the formal budget and the investment recommendation to the board for approval at the September board meeting. If the board approves the investment plan, the district will return with a vote to execute any short-term Treasury or similar investment.
