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Business manager flags enrollment decline, possible $450,000 transfer from capital outlay
Summary
Brett Burdett told the board the general fund is projected to close the year down roughly $55,000–$65,000 and proposed identifying up to $450,000 in Capital Outlay funds to cover early‑retirement incentives and potential shortfalls; he warned a change to the owner‑occupied mill levy could reduce property‑tax revenue by about $1.6 million.
Business manager Brett Burdett presented a preliminary view of the district's three governmental funds and highlighted drivers the board must consider in finalizing the 2026–27 budget. He said the March fund balance was down about $63,000 and projected to land between $55,000 and $65,000 by the end of the fiscal year depending on May–June results. Burdett outlined a proposed transfer mechanism from Capital Outlay to the general fund of up to $450,000, with the first $100,000 earmarked to pay an early‑retirement incentive; the remainder would be available only if needed to balance operations.
Burdett warned the board of two statewide policy and revenue risks: a reduction in the owner‑occupied mill levy enacted in Pierre could lower district property‑tax collections by roughly $1.6 million under current assumptions, and federal Title allocations could decline about $100,000 next year. He reminded the board that state aid and enrollment are the two most significant variables for the general fund and that lower enrollment (the budget assumes 2,900 next September) could offset projected increases in state aid. Burdett also described capital‑outlay projections (an anticipated $800,000 increase in property‑tax revenue in that fund if property taxes hold) and operational pressures (a potential Black Hills Energy rate filing that could increase utility costs by ~26% and add about $155,000 in electric costs districtwide).
Board members discussed staffing and expenditure shifts, including where the district shifted an insurance premium into capital outlay, and how transportation and special‑education staffing needs affect the three‑fund alignment. Burdett said the finance committee would continue to refine the transfer proposal and that a final preliminary budget will be brought back for board approval in May. The presentation will inform later action items, including whether the board will authorize any transfer from Capital Outlay.
