Thompson School District outlines balanced 2026–27 budget with staffing adjustments and cash‑flow planning

The Thompson School District on June 3 received a detailed walk‑through of the proposed 2026–27 budget, with finance staff describing enrollment declines, program reallocations and steps taken to balance revenues and expenditures.

Zach (director of finance) and other district staff said the budget process begins with the October 1 pupil count and that softened property valuations plus a modest enrollment decline reduced expected revenue. To close the gap the district proposed administrative reductions (about 19 positions through administrative review), reallocated non‑FTE spending to better reflect program charges, and recommended a one‑time reserve draw of roughly $1.6 million to balance the year without an across‑the‑board raise in the baseline budget. Staff emphasized there are no proposed cuts to special‑education staffing.

The administration also summarized the outcome of recent negotiations with the Thompson Education Association and other employee groups: licensed staff steps were funded and offset by four furlough days; some administrative/professional groups will take furlough days alongside smaller percent increases; classified staff received a larger percentage raise offset by two furlough days. Staff cautioned that health‑insurance costs were rising (the packet discusses an increase staff described in the meeting) and that every 1 percentage‑point increase in pay for all staff represents roughly $1.4 million in cost.

On cash flow and short‑term borrowing, finance staff asked the board to authorize participation in Colorado’s interest‑free cash‑flow loan program and suggested a $40 million authorization ceiling so the district can borrow as needed for timing differences in property‑tax receipts. Zach told the board the district expects to borrow roughly $30 million under that authorization if necessary and would report any borrowings back to the board. “We are going to be asking you for a $40 million authorization,” finance staff said during the presentation.

Staff also described ongoing work to move to a new budgeting system that will reclassify some line items currently spread across departments; that reclassification explains many of the apparent increases and decreases in line‑item totals in the packet, staff said. Projects funded by the 2024 bond — including a district‑wide fiber installation that is progressing faster than expected — were described as separate from the operating budget.

What happens next: the proposed budget and accompanying resolutions will go to the formal public hearing and adoption sequence later this month; staff noted the public budget hearing is posted and the official adoption vote is scheduled on the board calendar in the coming weeks. The administration said it will post clearer annotations in the packet to show where reallocations (versus net increases) explain apparent line‑item growth.Screening and additional public comment are scheduled under the statutory process before the board adopts the final resolutions.

Why this matters: the budget sets how the district will staff schools, fund classroom materials and pay benefits for the next year; decisions about furlough days, the reserve draw and the use of interest‑free state cash loans directly affect pay, service levels and the district’s near‑term fiscal flexibility.