Sheridan SD 48J board appoints Paula Branson and flags $400,000 budget shortfall for 2026–27

The Sheridan SD 48J board on Monday appointed Paula Branson to an open Position 4 and reviewed a budget message saying the district faces a roughly $400,000 deficit for fiscal 2026–27, driven by declining enrollment and higher operating costs.

Board members moved to accept Branson’s application during the meeting; the motion passed and the chair welcomed her to the board. The budget message, read by a district presenter, said the proposed budget includes reductions to operations, staffing and external contracts and shows a $600,000 projected ending fund balance, below the district’s $1 million target.

Why it matters: The shortfall and lower-than-policy reserves limit the board’s flexibility for the coming year and could require further personnel or program reductions. The message said five teaching positions have already been eliminated through attrition or reduction in force and that additional steps will be necessary to protect classroom instruction.

The presenter cited recent voter-approved capital funding and grants — a $6 million bond measure, a matching $6 million grant and an additional $500,000 grant — that will fund facility projects including a secure entrance at the high school and renovation of an old gym, but noted those restricted funds cannot be used for general operations. “The district is facing a projected 400,000 dollar deficit due to declining enrollment and rising costs, including utilities, transportation, insurance, and service obligations,” the presenter said.

Board members and staff discussed enrollment declines that reduce state revenue. The presenter said the district’s extended ADM/W fell from about 1,369 to 1,291 in 2025–26 and is projected at roughly 1,226 for 2026–27, noting the funding formula and charter-school flow-through payments to Sheridan All Prep affect local receipts.

Special education also factored into the discussion: speakers said high school special education enrollment is near 22 percent, but state reimbursement is capped (board members said at about 11 percent), leaving districts to cover the remainder from local funds.

District staff outlined possible contingency steps, including additional operational reductions, transfers within restricted accounts where allowable, and a discussion of furlough days as a last resort. Board members reiterated a preference to protect classroom instruction and expressed concern about falling reserves; one board member said holding a larger ending fund balance had been recommended during the recent audit.

Next steps: The board scheduled a Budget 101 work session on May 6 and another budget review on May 11; staff agreed to provide a clearer percentage calculation for the ending fund balance and to answer follow-up questions on insurance and bargaining assumptions. The meeting adjourned at 7:11 p.m.