The Callaway Board of Education met in front of a full room of district patrons for the Sept. 21 regular meeting which began 15 minutes earlier to accommodate a special budget hearing. During the hearing, citizens were allowed to ask questions and present comments. That hearing lasted just over an hour.

Several of those in attendance chose to address the board, and while the questions varied, the general consensus remained the same - taxes are too high and spending needs to decrease. A public meeting to explain the budget and tax request had been held on Sept. 2, with a crowd so large the meeting had to be moved to the school gym. After a great deal of discussion and research, including a budget workshop, the board had settled on two options to consider in terms of the tax request.

Option one would set the tax increase limit at 2.08 percent. “So we can tax a total of $3,759,022 and not go to the pink postcard hearing,” Superintendent JD Furrow explained. Furrow said the projection figures for that option would leave the district at a deficit of about $24,600.

Option two would set the tax increase at 4.72 percent, requiring a special hearing. Furrow said that with that option, the district can tax $3,864,489, which he added should result in nearly $64,000 extra at the end of the year.

School districts have a strict timeline they must adhere to when it comes to the budget process. Furrow reminded the board and the patrons present that the budget must be submitted to the state auditor by Sept. 30. Therefore, the board was prepared to cast a final vote during the meeting approving one of the two options, and had indicated during the Sept. 2 meeting that it would be option 2.

The board admitted that comments and concerns shared by the public at the Sept. 21 meeting would not change the outcome of this year’s budget and tax request, but added that the dialogue is very important now in terms of what may be decided next year.

Later in the regular business meeting, the board voted to approve the 2026-27 budget as presented with the 4.72 percent tax increase.

T.R. Anderson voted no. Because the district went over the 2 percent limit, it had to attend a special hearing at the county level. Our contributing writer Mona Weatherly attended that meeting and filed the following story.

Only two taxing entities had to appear for the “pink postcard” meeting on property taxes in Custer County this year – Sargent Public Schools and Callaway Public Schools. The joint public hearing is required when a taxing authority requests an increase of more than 2 percent plus real growth.

Callaway was represented at the Sept. 22 meeting, held at the Custer County Courthouse in Broken Bow, by Superintendent JD Furrow and board president Jim Phelps. The district has included a 4.7 percent increase in property taxes for the $6.5 million budget for the 2026-27 school year. Furrow explained that real growth for Callaway’s district was 0.08 percent. “Real growth is new development, new houses, new buildings, new grain bins,” he explained. “Last year it was over $2 million.”

Much of the discussion on Callaway’s budget in the last few meetings has centered on salaries. Callaway has three special education educators with 80 percent of the cost reimbursed by the state. “We believe in manning our school with people who are able to handle the needs of the students,” Furrow said. “Our goal is that every kid who comes through the door gets what they need.” The increase in minimum wages has contributed to the increase in salaries. Furrow said four positions were cut – two para positions, one teaching position and one maintenance position.

Furrow and Phelps were asked more questions by attendees during the “pink postcard” meeting. Some questions centered on recently acquired property that was purchased with the intent of expanding the school. Phelps said, “Teachers were teaching in a hallway. We needed a wrestling room. We figured out how to switch classrooms around, but we didn’t get the wrestling room. But building and expanding is off the table for now.” Discussions are ongoing about what to do with the acquired property.

In addressing the cost of personnel, especially administration, Furrow said, “Callaway was not academically performing, and the state required a plan. Last year we were rated excellent. We were in need of leadership and organization to create a system that has worked tremendously well. We made decisions that are right for our kids.”

Questions were also asked about the cost of a school nurse, a position that is currently required through special education to assist a special needs student during school and at school events.

In a table provided by Furrow, the cost per student for Callaway is $35,972. The cost per student for Sargent is $39,432.

The board also met for a special meeting on Sept. 24 at 7 a.m. to set the tax levy. The tax asking of: General Fund = $3,839,489, Special Building Fund = $25,000, General Fund Levy = 0.645073, Special Building Fund Levy = 0.004200, for the 2027 tax year was approved. Anderson voted no.

The next meeting of the Callaway Board of Education will be Oct. 12 at 8 p.m.