Preliminary 2026–27 budget shows modest general‑fund gap as enrollment projects to decline

School district finance director Mr. Crossway presented the preliminary 2026–27 budget at the May 11 Spearfish School District 40‑2 board meeting, saying the general fund currently shows expenditures exceeding revenues by roughly $176,000 and that projected general‑fund revenues are about $233,000 lower than the prior year.

Mr. Crossway told the board the revenue decline is driven in part by a projected enrollment decrease (about 40 students) and that capital outlay revenues are forecasted to exceed expenditures by roughly $39,000 because assessed valuations and the state formula expanded the district’s capacity for capital revenue. He described an anomaly in reappraisal figures compared with the prior year: a prior year increase in reappraisals of $214 million versus a $12 million decrease in the current preliminary figures, with approximately $150 million in growth tied to other valuation changes.

The presentation included line‑item spreadsheets and a high‑level summary: general fund revenues were adjusted using the state’s 1.4% aid increase; capital outlay rose largely to support a planned laptop purchase; special education funding changed (the presentation cited a $132,844 increase in one place and referenced a $95,000 delta elsewhere, figures the finance staff noted as preliminary). Mr. Crossway said the numbers are preliminary, based on county valuation data that may change before the district’s June budget hearing and final adoption.

The board did not take final action on the budget at the May 11 meeting; a budget hearing and the adoption vote are scheduled for June, when updated valuation figures and any requested adjustments will be considered.