Hot Springs County School District trustees adopt FY27 budget and approve 33.5-mill levy

Hot Springs County School District Board of Trustees adopted the district's FY2027 budget and approved a package of mill levies totaling 33.5 mills at their regular meeting. The motion to adopt the budget was moved and seconded and passed by voice vote.

Business Manager Jessica Benefield presented the budget and described major state-level changes that affected the district's revenues. "This year our foundation guarantee generated about a $150,000 more than last year," Benefield said, adding that Senate File 81 (the recalibration bill) shifted retirement contributions and other amounts out of the on-model funding calculation and into off-model reimbursement. She told the board that the full 15.191% retirement contribution will now be reimbursed off-model, requiring the district to front those costs and receive monthly reimbursements.

Benefield also explained changes to health-insurance funding (moving from a per-funded-position allocation in the model to an estimate and later reconciliation) and a change in the ADM (average daily membership) calculation from a three-year rolling average to a two-year rolling average. That ADM change lowered the district's historical ADM and reduced the model-generated share the district receives compared with prior years.

The business manager reviewed fund-by-fund details: the general fund (dominant, with most expenditures in salaries and benefits), special revenues/grants (noting prior ESSER funds and projected FY26 grant expenditures of roughly $940,000), enterprise funds (food service requires general-fund subsidy to pay living wages; teacherage rents projected about $60,000), and a daycare program that currently projects a roughly $100,000 deficit but has cash reserves. Benefield warned that when property valuations drop (the assessor projected a 9% county valuation decline), dedicated mill levies such as the early childhood BOCES half-mill may produce less revenue and the district could need to use general-fund dollars to maintain programs.

On the capital side, she described a likely two-phase capital project (top HVAC units) and major maintenance reserves (~$2.2 million) available for projects including track resurfacing, boiler rework, vocational HVAC, door and camera replacements, and other items.

The board approved the budget and the following mills as part of the motion: 0.25 mill special district tax, 6.0 mill county school tax, 0.5 mill Northwest BOCES, 0.5 mill Hot Springs early childhood BOCES, 0.5 mill Central Wyoming BOCES, and 1.0 mill Hot Springs County recreation district (total 33.5 mills). The motion passed by voice vote.

Votes at a glance - FY2027 budget and mills (total 33.5 mills): approved by voice vote. - Handbooks and many policies: approved (see board minutes for details); two activities handbooks were returned for further review and will receive a second reading next month. - Physical therapy services bid (Right Rehabilitation, 2026'27): approved. - Routine business (minutes, staffing recommendations, bills/financial reports, designated depositories, bonds, attendance officers, designation of superintendent as federal-funds representative, extra-duty salary schedule, part-time students): all motions carried by voice vote.

What it means The recalibration of Wyoming's school funding model shifts some recurring costs to off-model reimbursement and narrows the smoothing effect of a multi-year ADM average, which can amplify the effect of enrollment declines on model-generated revenue. Trustees and staff said they will continue to monitor reimbursements, manage reserves and bring follow-up items back to the board as necessary. The district will also host a consolidated-grant meeting and public outreach for grant priorities, and the administration will present revised activity handbooks for a second reading next month.

Next steps The board approved the budget tonight. Staff will continue to process off-model reimbursements and present any programmatic changes or recommended adjustments at future meetings.