Sioux Falls district presents package of class‑size moves, a higher staff‑pay recommendation and a smaller opt‑out levy
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Summary
At a board work session, Dr. Knowles presented budget options that would add elementary teachers (some paid with Title I and some from the general fund), recommend a 2.54% staff pay increase (0.59 points above the negotiated 1.95%), and lower the proposed opt‑out levy to $11,000,000; the board will consider a tentative budget on the 13th.
Dr. Knowles, presenter for Sioux Falls School District 49‑5, told the board at a work session that administration has drafted a package of budget changes that would fund modest elementary class‑size reductions, recommend a staff pay increase equal to the rate of inflation (2.54%), and reduce the proposed local opt‑out levy to $11,000,000.
The proposal bundles four approaches to shrink elementary class sizes: revise the district’s open‑enrollment regulation (JCA‑R) to lower kindergarten caps (from a 20.5 to a 19.5 class‑average trigger); add three Class‑Size Reduction (CSR) teachers at Title schools funded by Title I dollars (about $258,000 for one year); place four additional elementary teachers in non‑Title schools paid from the general fund (about $344,000); and establish administrative standards for principals to manage schedules and staffing. "The first applications, then we do it on space available, and it's all set off of ratios and numbers," Dr. Knowles said while explaining how open enrollments would be capped under the proposed policy change.
Why it matters: the combined package is designed to balance competing priorities—higher take‑home pay for employees, smaller core‑grade class sizes for students, and a limit on the local tax levy charged through the opt‑out. Administration presented five‑year projections showing that adopting the higher pay rate and adding teachers would reduce projected fund balances (roughly from $20,000,000 in earlier slides to about $16,000,000 over five years), making the outcomes contingent on legislative funding and reserve use.
Key details: the negotiated agreement in the budget package currently provides a 1.95% increase for all staff; administration recommends matching the rate of inflation at 2.54% ("The recommendation on there is that the staff, would receive the rate of inflation, which was 2.54%," Dr. Knowles said). That is about 0.59 percentage points above the negotiated number, and Dr. Knowles said the higher recommendation would be contingent on expected state funding or would revert to the negotiated level if additional state support does not materialize.
On class size, administration recommended lowering the kindergarten open‑enrollment threshold so schools that average above the cap cannot accept new open‑enrolled students; Dr. Knowles noted the change is intended to avoid "defeating the purpose" of class‑size reductions by continued open enrollments. For Title schools, the district would add three CSR teachers for 2026‑27 and monitor impact; for non‑Title schools it would add four general‑fund teachers as "wildcards" to be placed where the need is greatest, subject to space constraints at certain sites.
Tax and reserves: Dr. Knowles said the district could have levied up to $17.6 million in opt‑out dollars but used $12 million in the current year. The administration proposes taking $11 million in opt‑out for FY27 (a $1.5 million reduction from the proposal shown earlier) and using a combination of reserves and capital‑outlay funds to balance the budget if necessary. "It stays with the taxpayer, the property tax," Dr. Knowles said when explaining why unused opt‑out capacity remains with homeowners.
Board discussion and next steps: board members pressed for additional data on teacher vacancies and administrator applicant pools and one member asked whether administrators would consider foregoing the 0.59 percentage‑point increase so teachers and other staff could receive the inflation adjustment instead. Dr. Knowles said he would gather requested staffing and recruitment data and return figures for the board. The administration will bring the tentative budget (reflecting whichever options the board wishes to adopt) to the full board meeting on the 13th for consideration.
The meeting ended with a motion to adjourn and no formal votes on these budget recommendations during the work session; any approvals would occur at the board meeting on the 13th.
