West Bonner’s budget hearing Wednesday night could have gone differently. 

Without levy dollars, it likely would have been a dramatic and hours-long meeting, something not unfamiliar to Priest River residents, involving closing schools and laying off staff. 

Instead, Wednesday’s budget hearing took about 45 minutes with no community member questions and kudos from the trustees. Trustees will consider approving the budget at their next meeting but have yet to start negotiating with teachers, a critical step with new state minimum salaries set to substantially increase pay.

Voters approved a $4.7 million two-year levy in May with 60% in support. The levy was critical to keeping the district out of dire straits financially, said Debra Buttrey, who is contracted with the district to help with finances.

“I just need to bring attention to that to say had you not had a levy in place we would have a completely different conversation,” Buttrey said Wednesday.

West Bonner leaders hope it’s a turning point after years of controversy, a revolving door of administrators, and murky financials for the district that serves just under 1,000 students in Idaho’s panhandle. 

But the district isn’t on solid ground yet, West Bonner’s 2023 and 2024 financial audits are long overdue. 

Kendra Salesky, the district’s business manager, said the 2023 audit is “moments away” from being completed, after a pause to finish the 2026 budget. 

The same firm is conducting the 2024 audit, which Salesky hopes to have finished before school starts this fall. Then the 2025 financial year audit process will begin but on a delayed timeline, she said. 

While the audit is due to the state in October, Salesky said the district expects to submit their financials to the auditing firm in November with a completion date in February. 

The Idaho Department of Education can, but is not required to, withhold funds from a district if they do not submit their audits on time. The department withheld the district’s payment in Nov. 2023 but gave West Bonner the funds that February after receiving a hardship request.

The department again withheld funds in Nov. 2024, but released 90% of the funds after receiving a hardship request a week later. The state department currently has withheld $177, 482 from the district, that it would get back after submitting a 2024 audit. 

Salesky pointed to turnover in her position as part of the cause for the delays. There have been four business managers since 2021 with months passing without anyone in the role. Salesky is still learning the ropes, with help from Buttrey, a business manager from a nearby school district hired to help out, after she was promoted from managing accounts payable for the district in November. 

Salesky and IDE have been in frequent contact in recent months and they have answered questions and provided feedback, she said. She told the department that the 2025 audit will be delayed, Salesky said. 

IDE spokesman Scott Graf said another missed audit would “likely result in another holdback” but the department will assess if and when that situation occurs. 

“The state could withhold the entire November payment until the audit is submitted,” Graf said in an email. “However, in this type of situation, our goal is to exercise discretion and attempt to incentivize the district to complete its reporting requirements without creating an untenable financial situation in the district.”

Levy linchpin to 2026 budget

District leaders repeatedly thanked the community during the budget hearing for passing the supplemental levy in May.

“Thank goodness for our community that stepped forward and gave us the money we can operate on this budget because the alternative was closing schools, losing employees and good people in our community would have to make some big changes,” Board Chair Ann Yount said.

Despite the levy passage, the district’s budget remains tight, she said. The levy makes up 20% of the district’s general fund revenues, Buttrey said. 

It pays teachers and support staff salaries, along with classroom resources, extracurricular activities, and other operating expenses. 

As part of the audit process and in preparation to create a levy proposal, Buttrey combed through the district’s finances for the last 10 years. She found that the majority of the 2021-22 levy fund wasn’t spent but it’s unclear why. 

Those funds were earmarked to pay teachers and will be used in the 2026 budget for that purpose. 

“There is no extra in your budget even with that $2.1 million transfer in,” Buttrey said.

While Buttrey presented a balanced budget, the district needs to look at cutbacks and continue planning for the future, she said. The district’s food service program is operating in a deficit and needs to be reworked, she said. 

“This program is costing you over $650,000 a year. You’re not getting the revenues,” Buttrey said. “That’s unsustainable.” 

She encouraged the district to create a summer work group to figure out how to reduce costs and encourage more parents who qualify to fill out the free and reduced lunch form.

Buttrey also pushed for the district to think about ways to get their average daily attendance up from the low 90% closer to a 95-96% average. Both of those initiatives would increase revenue to the district, she said. 

While the budget presentation didn’t lead to many questions, there are still unknowns, Buttrey acknowledged.

The district has yet to start negotiating with the teacher’s union and doesn’t have a plan to meet the state’s new minimum teacher salary of $50,252. West Bonner’s current minimum pay is $42,724.