Sioux Falls school board adopts FY27 budget, raises average salaries above state aid and certifies levies

The Sioux Falls School District 49-5 board voted to adopt the district's fiscal year 2027 budget and to certify the related tax levies to the Minnehaha and Lincoln County auditors.

The motion to adopt the budget was made and seconded after a presentation by Business Manager Cameron Kirchhoff, who described the budget-development process, noted a planned use of $1,300,000 of fund balance for FY27 (down from $3,200,000 the prior year) and recommended certification of levies as presented. "The action that I request tonight would be a motion to adopt the fiscal year 27 budget and certify the levies to the Minnehaha and Lincoln County auditors as presented," Kirchhoff said.

Board members emphasized priorities that shaped the budget. "The most important job of the board is to approve the budget," said Nan Kelly, the board president, adding that trustees balanced fiscal responsibility with commitments to students, staff and families. The board noted $5,000,000 in expenditure reductions over two years and singled out class-size reduction, student learning and staff support as top priorities.

Key budget details included a state-aid increase of 1.4% for FY27 and a board-approved salary increase averaging 2.54% for staff. Kirchhoff said that the district chose a higher pay adjustment than the state aid growth in order to move closer to current inflation and board goals. To reduce elementary class sizes the district added seven new elementary teachers while still reducing overall expenditures in the general fund.

Kirchhoff reported projected FY27 general-fund revenue of $222,800,000 with an additional $10,200,000 in transfers in; other tax-supported funds include capital outlay and special education. He told the board the owner-occupied mill rate will drop by $1.77 per $1,000 of assessed value next year, a reduction tied in part to recent state property-tax legislation. The district's opt-out estimate declined from $12,000,000 last year to $11,000,000 for the coming year.

Following discussion, the board approved the FY27 budget and certification of levies by voice vote. The board directed staff to submit the levy certifications to the Minnehaha and Lincoln County auditors as required.

The adoption follows the district's regular budget timeline of subcommittee work, two board work sessions and a tentative adoption in April; Kirchhoff said the April tentative budget remained unchanged for the final adoption. The board will carry the approved budget into implementation for FY27 and monitor expenditures and revenues as the year proceeds.