Sheridan School District 48J budget committee approves $33.9 million budget, sets property tax levy and forwards to board

The Sheridan School District 48J budget committee approved a proposed $33,916,370 budget for the 2026–27 fiscal year and voted to set property taxes at a permanent rate of $4.7882 per $1,000 assessed value with a debt-service levy of $345,079 for bond payments; the measures will be forwarded to the full board for final action.

A district staff member presenting the budget told the committee she had moved a $100,000 line item out of “long-term debt” into fund transfers/unappropriated balance and reclassified a $200,000 contingency into the unappropriated annual fund balance to reduce legal restrictions on emergency spending. She said a $600,100 amount in capital project funds labeled an "owner’s contingency" in the bond budget was moved into purchase/services to avoid unnecessarily tight contingency constraints.

"It's still there in basically our savings account for next year," the staff member said, describing the reclassification. She warned that some contingency funds are subject to restrictions that limit immediate spending to small percentages without further board action.

The presenter summarized actions already taken to close a budget gap: five teaching positions were cut, program and contract reviews were completed, step increases were applied and classified staff were modeled with a 3.5% increase. She said the district’s ending fund balance stood near $600,000 before the committee considered additional cuts of about $400,000.

Committee members pressed the presenter on uncertainties that could change the picture, including full contract negotiations with licensed staff and insurance reopeners with classified staff. The presenter said those labor talks—and possible resignations—remain fluid and could affect staffing plans and costs.

The committee also discussed operational savings such as a travel freeze and a systematic review of contracts (referred to in the meeting as the "Emily Malloy list") to identify services that can be reduced or eliminated. Members asked about kitchen operations and the cost tradeoffs of reusable trays versus disposable equipment under the district’s four-day week schedule.

In other business, the presenter announced a summer learning grant of $120,000 annually for three years. The program is planned to hire six teachers, nine instructional assistants and a coordinator to serve roughly 100 students in grades 1–8 for four weeks in July, provide breakfast and lunch through the summer nutrition program, and partner with the city library for weekly literacy sessions.

A committee member moved to approve the proposed budget in the stated amount and the committee proceeded to vote. Committee membership was described in the meeting as 10 members; district staff do not vote. One member announced an abstention on the budget vote because a family member works for the district. The committee chair indicated the budget and tax-levy items will be forwarded to the full board for final consideration.

The presenter and committee members referenced historical constraints on tax-rate adjustments dating to state ballot measures in the 1990s and explained that the $345,079 levy will appear on property tax bills to meet scheduled bond debt service payments.

The budget committee completed the session and passed the measures to the board for the next step in the district’s adoption process.