Centennial SD finance committee advances budget timeline after federal, state funding updates

The Centennial SD finance committee met Nov. 13 to review preliminary state and federal budget developments, district finances through Oct. 31 and a proposed budget adoption timeline.

Presenter report and funding headlines: Presenter summarized early analyses of the newly approved federal budget and preliminary state allocations. Staff cited a $105,000,000 increase to basic education and a $40,000,000 increase to special education in the state-level headlines and noted modest changes to block grants. "$105,000,000 increase to basic ed, $40,000,000 increase to special education," the Presenter said, adding staff will clarify how those headline numbers translate to district allocations after attending a Pasbo/Intermediate Unit briefing.

Why it matters: Presenter told the committee these headline figures could affect the district's adequacy funding and charter-school chargings. Presenter said the state made technical changes to how charter enrollment fees are calculated, which staff expect will reduce Centennial's charter per‑student cost once reconciled.

District finances through Oct. 31: Staff reported year‑to‑date revenue through Oct. 31 of $93,255,000, primarily local tax collections, and expenses of $38,117,000, producing a positive net change of roughly $55,000,000 for the period. Presenter noted interest income and a homestead rebate as components of the revenue line. On the PISA subsidy, Presenter said the FY25 payment was not yet received and described it as "almost $3.1 million," which staff expect to roll in later.

Cost pressures and assumptions: Committee members and Presenter highlighted continuing cost pressures from salaries and benefits, which Presenter said account for about 70% of district expenditures. Presenter called out special education costs as a persistent pressure and said Centennial continues to track out‑of‑district placements; staff reported the district is about 20 students below last year's out‑placement count. Presenter also flagged health‑plan cost uncertainty and said an initial look at insurance renewals is expected in early to mid‑January.

Proposals and efficiency ideas: To address longer‑term balance challenges, staff described planning options under consideration: a review of the high‑school schedule, examining elementary staffing patterns, evaluating out‑of‑district placements for return to district instruction, additional grant seeking, and potential revenue through stadium/gym advertising and planetarium programming. The Presenter noted the planetarium is operational and will be used for district programming this year.

Timeline and committee action: Presenter presented a Centennial budget calendar that includes a Jan. 27 decision point for whether the board will exceed the 3.5% Act 1 index (the Presenter noted a single percentage point of Act 1 is worth just over $900,000 to the district) and a targeted final budget adoption at the board's June 9 meeting. Committee member moved to advance the proposed budget timeline; the motion was seconded and carried forward in committee business. The transcript records the motion and second; no roll‑call vote tally was recorded in the committee transcript.

Next steps: Staff will attend the Pasbo/Intermediate Unit briefing and provide a written summary for the superintendent's update and the broader board packet. The finance committee's next scheduled meeting is Jan. 15, 2026, and staff said they will bring more detailed reconciliations (charter fee math, insurance renewal estimates, and special‑education placement counts) to budget work sessions planned before the January decision.

The meeting adjourned after the committee completed its agenda.