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Sioux Falls board discusses phased reduction of ESSER payments to SBI to limit service disruption
Summary
At a work session the Sioux Falls School District board discussed stepping down ESSER-funded payments to SBI over two to three years rather than an immediate cut, citing transportation continuity and a modest one-time fund-balance effect. No formal action was taken; the tentative budget will be considered at the next board meeting.
Sioux Falls School District 49-5 board members discussed a proposal to phase out ESSER-funded payments to SBI to avoid abrupt disruptions to student transportation, saying a gradual reduction over two or three years would give the vendor time to recruit and maintain bus drivers.
The board member who raised the issue recommended “remove that in a stepwise fashion” rather than deleting the district’s ESSER payment to SBI all at once. The speaker said the payment in question was about $106,000 (the speaker also referenced $109,000 earlier) and suggested a two- or three-year step-down so SBI could “react and hire bus drivers, and maintain them so that we don't have any issues with kids arriving late to school.”
Todd, a district staff member, explained the budget effect if the board splits the reduction across years: “We just alter the fund balance by $53,000. And we'll alter it next year,” he said, adding the impact would be a one-time reduction to the district’s fund balance in each of the years the reduction is applied rather than a recurring new annual obligation. He described it as a “one time $53,000” effect on fund balance in a given year.
Board members debated options and preferences during the work session but did not take a formal vote; the superintendent’s office said the normal process would be to place the tentative budget for approval at the board’s next regular meeting, currently scheduled for April 14, at which point board members could move to adopt the tentative budget, offer motions to amend the SBI line item, and vote.
Why it matters: ESSER money is federal pandemic-era funding intended to support schools; changes to how the district uses that money affect the availability of services budgeted for the coming year (in this case, transportation) and alter the district’s reported fund balance in the short term. Board members said they wanted to weigh both operational continuity for student transport and prudent budgeting before finalizing the tentative budget.
Next steps and context: Because this was a work-session discussion, no formal budget decisions were made. Staff asked board members to consider the tiered reduction option and return with any motions or suggested language when the tentative budget is brought forward at the next board meeting.
