KSD discusses financial future after levy failure

KELLOGG — The Kellogg School District’s administrative staff recently met with community members to discuss plans after the district's replacement supplemental levy failed Nov. 4. 

Attendees received handout talking points, including the adjustments needed to the district’s budget for the 2026-27 school year and beyond to make up for the lost funds. 

KSD Superintendent Lance Pearson said he and the school board are looking for ways to cut the projected $3.5 million shortfall from the upcoming budget. The first step is having administrators and department heads identify and present ideas for reducing expenses. 

“Cutting roughly 30% of a budget is daunting, especially when approximately 82% of your budget is for salaries and benefits,” Pearson said. “This means you are cutting employees.” 

Attendees asked questions, with one of the most common concerns being what could end up on the chopping block if the levy fails again in May. 

It could impact many departments.

“This will adversely affect a large number of Silver Valley residents,” Pearson said. “It is traumatic to those employees, their families, our organization and our community. When schools suffer, communities suffer.” 

The increase in the proposed replacement levy from the current $2.95 million was twofold, both tied to Idaho Gov. Brad Little. 

He told districts to expect up to 6% in holdbacks for state funding and to plan accordingly, then later announced K-12 education wouldn’t see a holdback this year but made no promises for next year. 

Because of this, the school board passed a resolution for a levy that included additional funding to make up for the 6% Little warned about. 

According to staff throughout the district, many people didn’t understand Idaho House Bill 292, which created the Idaho School District Facilities Fund (ISDFF), and how it would have allowed the district to pass the levy at the increased amount while simultaneously lowering property taxes. 

HB 292 uses state sales tax revenue to offset portions of property taxes in districts with existing bonds or levies, resulting in most people seeing an average reduction of about 12%. This year, KSD expects about $650,000 from the fund, which would have reduced the proposed levy amount to below the current $2.95 million. 

If a district has no bond or levy in place, those funds are used specifically for future facilities projects.

District Clerk Megan Bumgardner is unsure if the district will attempt to pass the levy in May at the same amount it tried earlier this month, but the window to finalize its budget will be much tighter. 

Should the levy pass in May, many at the district office, including Bumgardner, anticipate adopting a budget with extensive cuts and then restoring programs and services at a later date. 

Pearson said the meeting was productive and hopes more people will rally around the district. 

“The meeting was an excellent interchange of ideas and information that went both ways,” he said. “I am sure we learned as much from the kind people who attended as they learned from us. I think most people left with a feeling of hope and inspired to work together to make certain our children get the school they deserve.”