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Sioux Falls 49-5 previews $3M-plus in cuts as district works to close multi‑year deficit

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Summary

District administrators presented a preliminary FY26 budget that relies on a mix of spending reductions and transfers from capital funds to close a multi‑year gap created in part by one‑time ESSER spending and a 1.25% state aid increase.

Sioux Falls School District 49‑5 administrators presented a preliminary budget and a package of reductions and fund transfers at a budget work session, identifying options to address multi‑year deficit pressures that rise if one‑time pandemic dollars are not replaced.

“ We are at the part of our process now, where we begin to put the the last look…to arrive at what we would say is usually our preliminary budget,” said Dr. Salim, opening the session. Administrators said the district carried roughly $8.3 million of services originally paid with ESSER (federal pandemic) funds into the current general fund and that, without changes, FY26 would show an $8.4 million structural deficit and grow to about $11 million the following year.

The budget team presented…

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