Silver Consolidated Schools adopts FY27 budget amid enrollment decline and program cuts

The Silver Consolidated Schools Board of Education on May 18 adopted its FY2026–27 operational budget after a work session in which the district’s business manager laid out revenue assumptions, grant restrictions and planned expenditures.

Michelle McCain, the district’s business manager and finance director, told trustees the operational budget would start the year at about $35,437,821 and that the district was projecting an available cash balance of a little more than $2 million at the start of the fiscal year. McCain said state funding remains driven by the Public Education Department’s funding formula — program units, weighted grade values and a teacher-cost index — and that districts must submit a balanced budget to the state by May 26, 2026.

McCain walked the board through major revenue streams and awards, including Title I, Title II-A, Title IV and IDEA-B, and noted that many grant funds are restricted for specific uses. She also identified recurring local revenue items — a Verizon tower lease and technology-related receipts — and federal and state grant carryovers, including roughly $375,000 referenced for the district’s school-based mental health grant carryover.

On the expenditure side, McCain said salaries and benefits are the district’s largest ongoing cost and described the district’s implementation of a statewide average 1% salary increase for all staff. The presentation discussed a district insurance shift toward an 80% employer/20% employee split and other benefit pressures, including medical premium increases. Utilities, maintenance and contract services were also listed as material budget lines.

Trustees and administrators flagged a districtwide enrollment decline as a significant fiscal pressure. McCain said the district’s membership is about 1,939.25 (prek counted as half) and that the district is down an average of 129 students compared with prior counts. Administration has closed two elementary school buildings and intends to use proceeds from their sale for capital projects rather than operations; those closures were presented as part of efforts to reduce ongoing facility costs.

The board moved from discussion to action in the evening session. By voice vote, trustees approved the FY27 operational budget, salary schedules, the increment schedule and a district disposal list. The board also approved motions to provide funding assistance for student travel for both Llata Middle and Silver High National History Day qualifiers and a HOSA team competing at national/international conferences.

The district’s director of finance and auditors had earlier presented the 2025 audit, which yielded unmodified opinions on both financial statements and the single-audit of federal awards. The auditors reported one finding — a late audit submission — and management provided a corrective action plan.

The board adjourned after a brief executive session in which no action was taken. The district will submit its balanced budget and supporting documents to the New Mexico Public Education Department by the state deadline.