Board approves tentative FY2026 budget as staff warns of multi‑million shortfall next year

The School District Board of Trustees on April 14 voted to adopt a tentative budget for the year ending June 30, 2026, after staff outlined revenue shortfalls and proposed position reductions intended to preserve a 4% reserve.

Presenter Christy Fielding told trustees that revenue assumptions reflect the governor's recommended budget and that several cost pressures are driving the need for reductions. "Our PERS percentage is increasing ... by 3.25%" and "the approximate dollar value of that is close to $700,000," she said. Fielding also said the district’s projected ending fund balance for FY2026 is $1,395,724, "which is exactly 4% of prior prior year expenditures and does keep us compliant with NRS." The tentative budget relies in part on one‑time adjustments to the FY2025 budget that raised the beginning fund balance for FY2026 to about $6,100,000.

Fielding and other staff described several adjustments the district has already made or proposed to close gaps. The governor's recommended funding changes cited by staff include a $39 per‑pupil increase in the Pupil‑Centered Funding (about $120,000 for this district) and a roughly $326,000 reduction in at‑risk funding; the latter has direct impact on general‑fund support for counselors. Fielding said insurance costs were budgeted at a 12% increase (about $623,000). She told trustees the district plans to expend remaining ESSER grant funds quickly while they are still available and has moved some positions temporarily onto grants for FY2025.

To trim recurring costs in FY2026, staff proposed or included reductions and reassignments that affect multiple schools: four middle‑school teaching positions and three high‑school teaching positions were removed and will be managed by adjusting class assignments; a three‑year‑old early childhood teaching position and a three‑year‑old ELL paraprofessional were shifted or closed because of limited funding for that program; one first‑grade and one third‑grade teacher position were absorbed by class‑size adjustments; an ESL paraprofessional at AC Best was removed; a transportation specialist position was proposed to be absorbed by the transportation supervisor; and $215,000 budgeted for school resource officers will be paid from remaining block grant funds. Fielding said the district added a driver‑trainer position to help address driver turnover at a cost of about $58,300 and added $75,000 in new‑hire incentive bonuses.

Transportation supervisor Natasha Domes told the board she recommended eliminating the transportation specialist position and that the department had debated cuts and tradeoffs internally. "I'm actually the one that recommended it," Domes said, adding that the driver‑trainer position will both train new drivers and provide driving coverage.

Human resources manager Cameron Sorensen cautioned the board about contractual protections for employees affected by reductions. "It does say in section 21 2 3, if an employee assumes a lower paying position due to a RIF, she or he will be guaranteed his or her present hourly wage for at least 1 full calendar year," Sorensen said.

Fielding said the district expects to expend about $4,700,000 from fund balance in FY2026 and warned that, without changes to revenue or major expense reductions, the district could face a projected FY2027 deficit of at least $5,000,000. She told trustees that wages and benefits are budgeted at 83.5% of the general fund for FY2026 and said "cautious spending will be paramount, but layoffs are absolutely a concern for fiscal year 26 27." Staff also told trustees the tentative budget includes a contingency of $125,000 (approximately 0.3% of current year expenditures).

Trustee Whitaker moved to approve the tentative budget for the year ending June 30, 2026; Trustee Guerrero Goetzch seconded. The board chair called for comment and, with no further debate recorded, the chair announced the motion passed unanimously. Fielding reminded trustees that the tentative budget is due to the state by April 15, the final budget will be considered at the board’s May 28 meeting, and it must be filed by June 6.

Public‑comment speakers included Dr. Stacy Cooper, assistant superintendent, who thanked principals and staff for "thinking outside the box" during the budgeting process, and Catherine Bourbon Mueller, director of learning and innovations, who praised grant coordinators for their work on funding requests. Trustees asked for more detailed line‑item documentation on proposed reductions and staff said spreadsheets and line‑item worksheets would be provided to the board.

The tentative budget approval does not finalize staffing or program decisions. Several of the positions moved to grant funding for FY2025 remain in the FY2026 general‑fund budget, and staff said some reductions discussed but not yet included could be presented to the board later. Fielding and other staff repeatedly emphasized the uncertainty of state and federal grants and the potential for funding changes once the state legislature finalizes its budget.