Superintendent says Sheridan SD faces roughly $400,000 gap and outlines staff, calendar cuts to close it

The district superintendent told the budget committee that Sheridan School District is facing a roughly $400,000 budget shortfall driven by declining enrollment and rising operating costs.

The presentation explained the primary drivers: a drop of 98 students, an estimated $300,000 reduction in state school fund revenue compared with last year, and increasing costs tied to retirement contributions, utilities and transportation. "Why is Sheridan School District making budget cuts?" the superintendent said, framing the session's central question.

The nut graph: declining average daily membership and the state funding formula are constraining district revenue. The superintendent walked attendees through estimates and reconciliations from March to May, saying the district's extended average daily membership weighted (ADMW) and formula estimates had fallen, producing a negative adjustment to state revenue. "The system works as designed, but it is not enough for today's needs," the superintendent said.

What the district is proposing and why: The presentation described tiered cuts already underway and contemplated next steps. Tier 1 actions taken so far include absorbing five full-time equivalent (FTE) classroom positions (three of those were resignations) and fractional reductions in district office positions. Tier 2 proposals under active consideration include reducing 5–7 classified positions, trimming some staff weekly hours (the classified insurance threshold was discussed at 32.5 hours, with a proposal to change to 32), pausing travel and selectively canceling contracts. The superintendent said the district is "coming close to that $400,000 gap" and continuing to seek savings.

Furloughs and calendar changes: As one option to preserve ongoing fund balance the superintendent discussed taking one or more furlough days (removing Fridays), estimating a single furlough day would save about $59,000. The superintendent noted any change to instructional days would require a board-approved calendar plan showing how instructional minutes would be returned in a subsequent year.

Grants, charters and special education costs: The superintendent reviewed grant revenue and constraints—state and federal grants are limited to specific "buckets" and fluctuate with enrollment. The Student Investment Account was described as roughly $800,000 currently funding six positions; the district was awarded $120,000 for a summer learning program and a $500,000 Cox grant tied to bond projects was referenced. The presentation also flagged special education funding limits: a referenced 11% cap on funded high-cost placements and that out-of-district placements can cost the district as much as $70,000 per student, which increases pressure on the general fund.

Charter school enrollment impacts were discussed: the superintendent said hosting charter ADM produces district overhead revenue but that the share the district keeps has changed over time and was discussed in ranges during the presentation; historical estimates of the charter effect on revenue were mentioned.

Process and next steps: The superintendent said licensed bargaining negotiations would begin in the coming weeks and that the board will review and adopt the budget in late June. Any calendar adjustments tied to furlough days would also go to the board for approval. The superintendent said staff would circulate the presentation and spreadsheets used in the meeting and invited questions from committee members.

The meeting closed at 7:07 p.m. with the superintendent saying the district will continue to refine estimates, pursue contract and travel freezes where appropriate, and present a recommended budget to the school board in June.