Superintendent says new state 'recalibration' rules create uncertainty for district compensation plan

The Hot Springs County School District superintendent told the board the state's recent school-finance "recalibration" has created substantial uncertainty about how the district can set pay increases for the 2026'27 year.

"Recalibration is a new board game, and we're missing the last few pages of directions," the superintendent said, arguing that the new law effectively split the block grant into an instructional silo and an operations silo and that reporting rules still need to be released.

Why it matters: Trustees heard that the state infusion increased money for instructional salaries statewide (the superintendent said roughly $100 million to $120 million) while reducing operations funding by about $9 million statewide, a combination that will restrict districts' flexibility to apply uniform percentage raises across both instructional and operational staff.

At the meeting the superintendent outlined known and unknown elements: districts will likely face stricter reporting requirements and limited ability to move instructional dollars to operations. The superintendent also said the district's third-quarter staff absences fell from 612 in 2025 to 463 in 2026 and suggested the four-day week may be reducing absenteeism.

Trustees weighed options and timing for compensation decisions. A motion to table the board's procedure for determining 2026'27 compensation passed to allow time for the state to publish rules and for staff to gather necessary data. A trustee warned a special meeting may be needed if guidance does not arrive in time to meet budget deadlines.

Board member reactions were mixed but focused on process: several trustees said they remain committed to compensating staff but need clearer rules before adopting a district-wide equal-percentage approach. "The reporting requirements and the rules are going to be strict," the superintendent said, urging patience until the state issues detailed guidance.

Next steps: The board tabled the compensation-procedure discussion and expects to revisit it at the next regular meeting or a special session after state guidance is published.