Watertown School Board Unveils $116.6 Million Preliminary Budget; Overall Spending to Decrease

Steve Jurrens
5 days ago
2 min read

Northeast Radio SD News – Watertown, SD - The Watertown School Board received its first formal look at the 2026-2027 preliminary budget Monday night, revealing a total operating plan of $116,617,894. The new budget marks a 3.66% decrease in overall spending compared to the previous year.

Business Manager Heidi Clausen presented the figures, noting that the budget is split between K-12 operations (55%) and Lake Area Technical College (45%). The General Fund, which covers daily district operations, is projected at $30.6 million, a 3.31% decrease. This fund remains heavily focused on personnel, with salaries and benefits accounting for 84% of expenditures.

Board members noted that while spending is down this year, it follows a larger trend.

“Last year, it decreased about 10.9%. So between the last two years, the district budget has decreased about 14%,” observed Board member Jean Moulon.

Clausen clarified that these sharp decreases are largely due to the completion of major building projects, such as the diesel expansion and the athletic complex.

Other budget highlights include:

· Special Education: A 5.88% increase to $10.1 million, driven by a need for more staffing at McKinley Early Childhood Center to support projected enrollment growth.

· Capital Outlay: Budgeted at $10.1 million, including plans for air conditioning at Jefferson and Lincoln Elementary Schools, new buses, and parking lot upgrades at Jefferson.

· Enrollment: The budget is built on a projected enrollment of 3,304 students.

The board officially set the public budget hearing for July 13, 2026, at 5:00 PM.