Sioux Falls board tentatively approves FY27 budget with 2.54% salary increase and reduced opt‑out

The Sioux Falls School District board held a public hearing on the FY27 proposed budget and tentatively approved the plan after a presentation from district staff and board discussion.

Presenter Ty Beek walked the board through the financial outlook: general‑fund revenue was unchanged at $232.3 million, projected expenses are down by about $1.2 million, and the district reported $2.4 million in efficiencies that improved the budgeted deficit by $1.9 million. The administration recommended increasing staff salaries to 2.54% (to match the rate of inflation at 2.54%), reducing the proposed opt‑out from about $12.5 million to $11 million, and adding three Title I elementary teachers and four additional general elementary teachers to reduce class sizes in qualifying schools.

Beek summarized the five‑year outlook, noting a planned fund balance of 11.1% for FY27 and an increased transfer from capital outlay to $10 million for the coming year. When presenting the fund‑balance figure he corrected himself on camera: “We expect to have a fund balance at 9.9%… I’m sorry, 11.1%.”

Board members emphasized priorities that guided the proposal: no layoffs, avoiding small cuts spread across many employees, and preserving class sizes. Multiple board members thanked administration for work across multiple work sessions since November and approved the tentative FY27 budget by voice vote; the transcript does not record a roll‑call tally. The board will move forward with the proposed budget process following the tentative approval.