Huron School Board hears details of budget cuts

by Benjamin Chase
of the Plainsman

HURON –– After a significant decline in enrollment this year, the Huron School District was forced to make a number of cuts for the 2026-2027 school year budget. The Huron School Board heard the details of the cuts at Monday evening’s meeting.

Business manager Kelly Christopherson presented the details of the budget for the board, outlining that the district needed to cut $1.6 million from the 2025-2026 budget with a 2,968 student enrollment estimate for next school year as the basis for the revenue side of the budget. The high in enrollment for the school was 3,080 on count day in September 2024.

Christopherson reported that $598,000 in cuts were implemented from the general fund in this year’s budget due to enrollment decline. Each administrator in the district attempted to reduce up to seven percent in their individual area’s budget.

He then broke down the cuts from each portion of the district. He identified Buchanan will make $160,000 in reductions by eliminating a first-grade teacher due to enrollment and an EL teacher. The two teachers will be reassigned.

Madison 2-3 Center reported $8,000 in reductions via supplies and travel costs, but Christopherson noted that Madison had made significant budget alterations for the 2025-2026 budget.

With large enrollment numbers at Washington 4-5 Center, reductions were $17,000, primarily through supplies and travel costs.

The two colony schools had minimal reductions, primarily achieved through supplies.

The Middle School reported $177,000 in reductions through two classroom teachers leaving, dropping the middle school play and Tiger Cub follies, and also through supplies and travel.

The High School had the largest dollar amount of any one department, with $440,000 in budget adjustments, achieved through one classroom teacher transferring to grant funding and four other teaching positions cut.

Activities are trimming $27,200 through reduction in coaches, supplies and travel. The Activities Director’s office is trimming another $7,300 through supplies.

Curriculum and instruction reduced by $24,900, EL by $101,000, and the buildings shifted expenses from general fund to capital outlay to cut $106,000.

Technology reduced $16,000 through supplies. Transportation reduced by $110,000 through staff restructuring and moving to one route next fall in rural.

Christopherson outlined the next steps, which begin with Superintendent Kraig Steinhoff and Christopherson meeting with district staff on Feb. 11.

Board members discussed potential re-hire or shifting of staff next year based on needs. This could work as long as certifications were transferable.

Lily Ramirez, a SPED para educator at Madison 2-3 Center, was selected as the classified employee of the month for January 2026. Heather Rozell presented Ramirez with her award.

The board approved six new hires and nine resignations, along with a pair of intentions to apply for grant funding.

Rebecca Lolling of ELO CPAs and Advisors presented the 2024-2025 audit report. She reported that no deficiencies were noted in the entirety of the audit. The audit report was approved.

The original letter sent by Superintendent Kraig Stienhoff to explain the budget changes is included:

The Huron School District is working through a budget shortfall. The purpose of this writing is to explain our current reality, how we got to this point, and what we plan to do about it. School funding is complex and can be confusing.

What is our current budget reality?
The budget for the 2025-2026 school year was developed in the spring of 2025 and was based on an anticipated enrollment of 3,080 students for this school year. Our budget, approved at the June 23, 2025, Board of Education Meeting, planned a deficit of $115,000 in the General Fund. However, as the school year began, we had several data points indicate to us that we’d likely be more than $115,000 short. These data points included a lower-than-anticipated student count of 3,080, with an official count day enrollment of 3,042; a reduction in savings interest due to the decrease in federal interest rates by the Federal Reserve; and a projected shortage in our budgeted utility bills.

I collaborated with the administrative team to identify cuts to achieve savings within the 2025-2026 budget, totaling $598,275, as discussed at the October 27, 2025, Board of Education Meeting. Unfortunately, our enrollment has continued to decline since the beginning of the 2025- 2026 school year. The enrollment on December 23, 2025, was 2,982.

How did we get to this point with our budget?
The current budget situation has been created by several factors. These include the following:

• A decline of enrolhnent
• Our property and liability insurance premiums have increased by more than $500,000 in the last three years due to a reassessment of our facilities and the number of catastrophic events needing insurance payouts across the nation and world
• We borrowed $11.5 million dollars for building projects that were in the planning stages for several years and approved in the fall of 2024. The annual debt repayment difference is $250,000, compared to our debt expiring at the end of this school year.
• The interest that we earn on our savings account is reducing due to the lowering of the federal interest rate by the Federal Reserve.
• Inflation continues, which makes our purchases more expensive without additional revenue to cover the increased cost of supplies, equipment, etc.
  

What do we plan to do about it?
The solutions for a school to fix budget problems are similar to those for business and personal finance. We must do one or a combination of the following: reduce expenses or increase revenues. Increasing revenue from the South Dakota Department of Education is not an option unless our enrollment increases. Another form of mcreasmg revenue is opting out, which would cost more for taxpayers living in the District. We are not planning to opt out at this time.

Our plan to reduce expenses and right-size our budget began earlier this fall. As we create the 2026-2027 budget, we need to cut more expenses from our 2025-2026 budget to match our revenue and ensure that we can pay our bills for the 2026-2027 school year. We anticipate the need to cut expenses by $1.2 to $1.6 million (including the cuts already made for this year). The cuts are never easy and will ultimately mean we are providing less for the children. However, our focus when identifying cuts will be to minimize negative impacts on student achievement and job loss for HSD staff. Below is the timeline we have used and will continue to use as we prepare for the 2026-2027 school year.

Budget Timeline
January 6, 2026: Administrator’s Meeting – General Fund reductions for 2026-2027 will be compiled and agreed upon. Communication with affected staff members will begin.
January 12, 2026: School Board Meeting Executive Session to discuss affected personnel and contracts.
January 20, 2026: Administrator’s Meeting – All General Fund reductions will be finalized. All communications with affected personnel must take place before the January 26, 2026, School Board Meeting.
January 26, 2026: School Board Meeting – The proposed reductions to the 2026-2027 General Fund budget will be presented to the school board.
February 9, 2026: School Board Meeting – Certified contract non-renewals and classified non­-renewals for 2026-2027 will be approved by the school board.
May 11, 2026: School Board Meeting – 2026-2027 proposed budget presentation.
June 8, 2026: School Board Meeting – 2026-2027 budget hearing.
June 26, 2026: School Board Meeting -2026-2027 budget adoption.

I am sorry we are going through this financial crisis. The Huron School District will survive this dilemma, as it has before. We need to remain committed to educating the children and remember that this is their moment to learn, grow, and become the best versions of themselves as they work towards graduating as Huron Tigers. Please don’t hesitate to contact me if you have any questions, concerns, or suggestions.

“The best way out is always through.” Robert Frost

Kraig Steinhoff, Superintendent