Falling enrollment and federal grant reductions squeeze Central SD 13J budget

District staff told the budget committee enrollment is down and revenue pressure is forcing difficult choices in the 2026–27 budget. The district reported current enrollment of 2,862 students and said it has lost an additional 56 students since February, a decline that reduces enrollment‑based state funding. Staff and the superintendent explained districts report estimates three times per year and that failing to adjust estimates can trigger look‑back paybacks from the state; the district is actively adjusting to limit future clawbacks.

Staff outlined budget drivers: operating revenue growth of about 0.86%, lower special revenue (down roughly $616,000 year‑over‑year as federal grants and carryover decline), and increasing personnel costs (staffing comprises roughly 80% of expenditures). The all‑funds budget presented was $68,667,744 with a general fund of $50,616,000; staff noted some reserve and debt‑service increases tied to bond payoff timing.

To balance the budget staff described a hiring freeze, eliminated or unfilled positions (elementary, secondary and district office), and a ‘‘stress test’’ tool showing cost per day/year for positions or programs to help prioritize cuts. They also described options the board — not the committee or superintendent alone — can take: reduce operating contingency (board policy) or direct furlough days, both of which have consequences and legal constraints. Staff warned that if federal funds disappeared entirely, the district could face nearly $2 million in lost revenue and would have to backfill those dollars.

Committee members asked detailed questions about weighted enrollment (extra weights for students with disabilities, emerging bilinguals, poverty), high‑cost disability reimbursement (district receives roughly $11,000 per high‑cost student but reimbursement percentages have fallen), and the cost/benefit of community eligibility for meals versus paid lunches. Staff said more detailed scenarios would be presented to the board when the committee’s recommendation is forwarded for adoption.