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Preliminary 2025–26 budget shows possible $483,000 general‑fund gap; board to review before June adoption
Summary
District staff presented a preliminary 2025–26 budget showing a worst‑case general‑fund shortfall of $483,000, a potential special‑education gap of about $37,006 and options tied to mill levies and capital outlay decisions; the board will finalize the budget in June.
A district staff member presented the Spearfish School District 40-2 Board with a preliminary fiscal 2025–26 budget on May 12, outlining a possible $483,000 shortfall in the general fund if the district spends to all budgeted amounts and a projected special‑education shortfall of approximately $37,005.71.
“The biggest number that, catches my attention anyway is the $483,000 that expenditures and general fund exceed revenues,” the budget presenter said, describing the figure as a worst‑case projection. The presenter asked the board to focus on summary pages and noted that line‑by‑line detail is available on request.
Key points in the presentation included: an assumed 1.25% state funding increase and an enrollment estimate of 2,370 (the presenter said current enrollment stood at 2,347); a capital‑outlay mill calculation of 1.979 per $1,000 of assessed value; and a special‑education mill levy at 1.189 versus the state maximum of 1.462 (the presenter said that difference represents roughly $822,000 in revenue the district is not capturing at the current levy).
The presenter noted an assessed‑value reappraisal for the county ($214 million referenced in the presentation) that affects property‑tax tables, but cautioned that lower levy rates do not necessarily mean lower tax bills in absolute dollars when assessed values change.
Capital outlay expenditures were shown with a roughly $789,000 increase over the current year in the preliminary numbers; the presenter said that placeholder amount reflects potential work on the middle‑school track and football field if the board and facilities group decide to proceed. Food‑service revenues and expenditures were adjusted upward to reflect year‑to‑date actuals; driver‑education revenues were projected lower because of reduced participation.
The presenter also reviewed the district’s qualified school construction bond (QSCB) tied to Creekside Elementary, noting the principal (approximately $1.4 million) is currently invested and that interest‑credit mechanics will continue until the bond’s maturity in December 2026.
The budget is still being refined: the presenter said the special‑education projection and final mill‑levy calculations may change after additional conversations among district business staff and that the budget will return to the board for a public hearing and adoption in June.
Board members were invited to submit questions to the presenter or the district business office before the June meeting.
