Billings School Board Faces August Deadline on Budget Cuts, Teacher Layoffs

Billings Public Schools trustees have less than three weeks to finalize a budget that could eliminate more than 40 teaching positions and close McKinley Elementary School, the district’s oldest continuously operating campus.

The board meets July 22 at the Lincoln Center administration building on North 27th Street to vote on a proposal that would cut $4.2 million from the 2026-27 academic year budget. Superintendent Dr. Karen Zunkel’s administration has recommended shuttering the 112-year-old school at 529 Park Lane and reassigning its 168 students to Newman and Highland elementary schools.

Enrollment Drop Drives the Cuts

District enrollment has fallen by 872 students since 2020, according to the Office of Public Instruction data released in March. That decline triggers a corresponding reduction in state per-pupil funding, which accounts for roughly half of the district’s $128 million general fund budget.

Montana law requires school districts to maintain a minimum 5 percent contingency reserve. Billings currently holds a 3.8 percent reserve, leaving trustees little flexibility. State Superintendent Lance Melton told the board on June 15 that any budget approved after the Aug. 10 statutory deadline would require a separate waiver from the state Board of Education.

The proposed cuts would reduce the district’s teacher workforce by 43 full-time-equivalent positions, shrink elementary music and art programs by one period each at every school, and eliminate the after-school tutoring program at the Billings Public Library’s downtown branch on Montana Avenue.

What Happens Next

Trustees have three options on the table: approve the full $4.2 million reduction package, adopt a scaled-back version that preserves McKinley Elementary using $800,000 from the district’s technology reserve fund, or push the decision past the Aug. 10 deadline while negotiating with the Billings Education Association for a one-year pay freeze that could close the gap by $1.1 million.

Board chairwoman Patricia O’Brien confirmed that a special meeting will be held July 29 if the July 22 vote fails. A straw poll taken at the board’s June 29 work session showed four of the seven trustees leaning toward the full reduction package, including the closure of McKinley.

The Education Association has scheduled a membership meeting for July 17 at the Hilton Garden Inn on King Avenue West. Union president Mark Jacobs said Tuesday that teachers are prepared to strike if the board imposes layoffs without accepting the pay-freeze offer.

Parents of McKinley students have organized a letter-writing campaign and plan to address the board during public comment on July 22. The school’s PTA has collected 1,340 signatures on a petition opposing the closure, according to treasurer Lisa Christensen.

The district’s budget deadline coincides with the start of the fall sports season. Registration for high school football, volleyball and cross-country at Billings Senior, West and Skyview highs closes on Aug. 1. School officials said teacher layoffs would not affect coaching assignments, but some assistant coaching positions could be eliminated if fewer sections are offered.

Trustees who opt to extend negotiations past the Aug. 10 deadline risk triggering a state-mandated budget freeze that would halt all nonessential spending, including textbook purchases and building maintenance. The district’s maintenance crew has already deferred $600,000 in roof repairs at four elementary schools, according to facilities director Greg Hodges.

The board’s final decision will be announced by Aug. 8, with official adoption required no later than Aug. 31. Families of McKinley students will receive transfer packets by Aug. 15 if the closure is approved, according to the district’s communication office.