Huron School District reports roughly $950,000 general-fund shortfall as federal Title funds are frozen

The Huron School District reported a projected general-fund shortfall of about $950,000 and said $763,057 in federal Title program funds were frozen July 1 by the U.S. Department of Education.

Business Manager Kelly Kristofferson told the school board July 14 that district expenditures currently exceed revenues by about $1.7 million and, after expected accounts receivable are posted, the shortfall will be ‘‘in the neighborhood of $950,000.’’ He told the board the district plans to transfer $700,000 from capital-outlay and $40,000 from the enterprise fund, with the remaining roughly $210,000 taken from the general fund balance.

The shortfall comes as the district faces rising utility and insurance costs, falling student counts and lower interest earnings. Kristofferson said utilities are approaching $1 million annually and have exceeded estimates by about $200,000. He also said the district began the year with an enrollment of about 3,082 students and is now more than 100 students below that start-of-year figure.

Superintendent Dr. Steinhoff told the board he received notice June 30 that federal Title II-A, III, I-C and IV funds would be frozen effective July 1, affecting $763,057 for Huron. He said he had contacted the South Dakota secretary of education and federal lawmakers, and described the timing and immediate effect on district planning as disruptive. "This freeze feels like an attack on public education and is very disappointing," Dr. Steinhoff said.

Dr. Steinhoff said other states have experienced similar freezes that were later resolved; he told the board some freezes were lifted in weeks while another took months. He said the district had already issued contracts for the upcoming school year and cannot unilaterally cancel those obligations on 24 hours' notice.

The board did not vote on budget changes at the meeting. Kristofferson said staff will begin work on the 2026–27 budget with a planning assumption that the district may need reductions approaching $1.5 million (roughly 5% of the general fund), depending on next year’s enrollment count and cost trends.

The district also reported ongoing capital projects, including progress on the high school addition (roofing and site work in progress), installed Tiger Stadium scoreboard (power/data connections pending) and middle school boiler and roof work. Kristofferson said work remains to complete a full high school kitchen remodel because the existing exhaust hood and roof structure require engineering and renovation before new equipment can be installed.

Kristofferson and Dr. Steinhoff indicated they will continue to update the board as federal funding status and budget projections become clearer.