Huron proposes nearly balanced $28.9 million general fund budget for 2025–26; capital projects to accelerate

Kelly Kristofferson, Huron School District 02-2 business manager, presented the proposed budget for fiscal year 2025–26 at the May 12 board meeting, saying the general fund would bring in $28,805,000 and spend about $28,920,000 beginning July 1, 2025.

Kristofferson said capital outlay revenue for the district is estimated at nearly $6 million while planned capital outlay expenditures total about $16.76 million, reflecting capital certificates issued in the current fiscal year whose projects will be paid after July 1. He told the board the general fund estimate is “almost balanced,” a gap of roughly $115,000 on a multi‑million dollar budget.

The proposal uses an enrollment estimate based on count-day rules set by state law: Kristofferson noted the district’s September count day determines state aid and said the district used an estimated enrollment of 3,082 students (the last Friday in September 2024 figure) as the basis for the budget. He told the board that enrollment had fallen to 3,002 by April 17 but the district’s enrollment study projects a gain of 51 students in 2025–26.

Kristofferson outlined major fund highlights: special education is the district’s second-largest fund at about $7.7 million; the food service fund is roughly $2.8 million; and the enterprise fund (concession stands, driver’s education, preschool) is expected to raise about $255,000. He said capital outlay carries multiple ongoing debt obligations, including payments for the 2024 high school expansion and earlier projects, and that two obligations (turf/tennis and an LED lighting loan) are scheduled to be paid off this fiscal year, freeing up nearly $800,000 in capital outlay capacity.

On compensation and state targets, Kristofferson said state guidance sets a target teacher compensation level that varies by district. He projected Huron’s per‑teacher compensation at about $83,032 for the current period — above the state’s 97% minimum threshold — and estimated the 2025–26 state target would rise modestly, projecting the district to remain above the minimum.

Kristofferson identified cost pressures: 87% of the general fund pays salaries and benefits; property and liability insurance is budgeted for a 10–12% increase; utility costs are rising and he added $175,000 to the proposed budget for electricity, natural gas and water. He listed offsetting revenue increases including estimated enrollment growth, additional CTE collaboration revenue, higher scoreboard advertising income and increased receipts from the state Office of School and Public Lands, which he said are tied to interest rates.

He presented fund‑balance history showing a post‑pandemic decline from a higher peak in 2021; the district ended the last fiscal year with about a 14% general-fund fund balance. Next steps, Kristofferson said, are a public budget hearing at the first June board meeting and final adoption at the second June meeting.

Proposed budget documents and calculations were presented in the board packet for public review; no final vote was taken on May 12.