Centennial SD proposes roughly $83.5 million general fund budget for 2025–26, plans modest deficit and targeted reductions

Centennial School District officials on April 23 presented a proposed 2025–26 general fund budget that keeps most classroom programs intact while planning a modest planned spend-down of reserves to cover a structural gap driven by declining enrollment and state funding uncertainty.

Superintendent James Owens and Director Sotherton (Business Services) told the budget committee the proposal preserves co‑curricular activities, career and technical education and special education supports while carrying an estimated $1.9 million (about $2.0 million in some summary lines) deficit that will be covered in part by a planned draw on the district’s ending fund balance.

The district said current‑year general fund revenue is just under $79 million and next year’s forecast is roughly $81 million. Key cost drivers are personnel costs — including step increases, cost‑of‑living adjustments and a projected PERS rate increase the district estimated at roughly 2 percent (about $935,000) — plus higher costs for students with significant special‑education needs. District staff told the committee they expect a continuing enrollment decline of roughly 100 students a year, which reduces state funding by roughly $1.4 million in next year’s projection.

Why it matters: Centennial’s planned deficit follows a multi‑year effort to…