The Heart Butte school district terminated 31 staff members and accepted five resignations Tuesday.
The school board voted in favor of the layoffs because the district has $1.5 million worth of debt.
The district is currently auditing finances. It has found misuse of school credit cards, school funds as well as misreporting of payroll and taxes.
The district placed the former superintendent on administrative leave last year. An interim superintendent has not yet been appointed, according to the district.
The layoffs include teachers, mental health workers, custodial and kitchen staff.
The board earlier this week said it planned to approve the layoffs to prevent the school’s closure. The district serves roughly 200 students.
The school board chairperson did not respond to a request for comment.