Natrona County School District adopts $352.998 million FY2027 budget after CFO outlines Senate File 81 impacts

The Natrona County School District #1 Board of Trustees on July 1 unanimously approved a $352,998,312 budget for fiscal year 2027 after a detailed presentation by Chief Financial Officer Matt Flett.

Flett told the board the FY2027 package incorporates statutory changes under Senate File 81 and new GASB presentation rules that change how appropriations and beginning cash balances appear in the budget. He said the district’s proposed general fund revenue for FY27 totaled $241,875,472, an increase of about $16.8 million over FY26, but noted roughly $15.9 million of that increase is one‑time revenue tied to implementation of Senate File 81 and that ongoing recurring revenue growth is projected at about $1 million.

Flett said a major provision of Senate File 81 established a statewide average teacher salary target of $73,056. Based on the district’s FY26 projected average teacher salary of $70,054, meeting the target adds ongoing general fund costs of roughly $4 million. To absorb additional ongoing costs while preserving long‑term stability, the district reduced salary and benefit expenditures by approximately $4.5 million — equating to about 53 full‑time‑equivalent positions — and announced the planned closure of Barton Elementary and the Woods Learning Center for the 2026–27 school year. Flett emphasized those reductions were achieved through attrition and that no reduction in force was required.

The budget includes both ongoing salary adjustments (step and lane movement, a $2,500 increase to each certified salary cell, targeted increases for school psychologists and administrators, and higher substitute pay) and several one‑time compensation investments funded by temporary revenue. Those one‑time items include a $1,500 contribution to eligible employees’ 457 retirement accounts, a $25 monthly increase to the district’s 457 matching contribution, a $1,700 one‑time retention bonus for all employees and an additional $2,500 retention bonus for non‑certified staff.

Flett also outlined large one‑time transfers proposed to shore up capital and technology needs: a $5 million one‑time transfer to the Student Technology Replacement Fund and a $10 million one‑time transfer to establish a new Equipment Replacement Fund intended to cover equipment needs for the next eight to ten years.

On funding structure, Flett described the district’s fund categories — general, special revenue, major maintenance, capital projects, debt service, food service and custodial — and noted special revenue is driven largely by federal grants (reimbursement basis) and that major maintenance anticipates about $13.7 million in grant revenue for FY27 with a proposed appropriations budget near $22 million, the difference to be covered by prior grant resources and planned cash on hand.

Trustees asked clarifying questions during the presentation about what positions are “inside the silo” (instructional staff funded by the model) versus outside it (support staff and other roles), how athletic programs would be sustained, and how SROs (school resource officers) are funded. Flett said athletics had not been cut and that SROs are funded roughly 60% from general fund dollars and 40% from Title IV grant funds; he cautioned that moving to categorical state grants could reduce local flexibility.

Several trustees criticized the short timeline and limited state guidance accompanying Senate File 81’s implementation and urged transparency about recalibration data (the RCA) used in the state model. Flett said the district has requested underlying RCA weighting and data from the recalibration consultants without success to date.

After discussion the board budget committee chair, Trustee Kyla Alvey, moved to adopt the FY2027 budget at $352,998,312; the motion was seconded and approved unanimously.

The district’s next regular board meeting is scheduled for Aug. 24 at 6:00 p.m. at Central Services.