A primary focus of the meeting was the presentation of the annual operating plan for 2025-2026 by the district’s business services director, Cam William. The plan detailed a projected revenue of $118.8 million against $117.3 million in expenses, resulting in a net fund balance increase of $1.5 million. The district’s financial health was underscored by a projected year-end fund balance of $13.17 million for FY26. However, Cam highlighted a significant gap in state general education aid, exacerbated by a 19.7% shortfall when compared to what the funding would be if it had kept pace with inflation since 2003. The presentation included budget assumptions, such as a 2% salary increase, rising health insurance premiums, and increased energy costs.

Board members engaged with the financial specifics, particularly the challenges posed by the shortfall in state aid. Discussions also covered the impact of changes in special education aid and federal grants, noting reductions following recent legislative sessions. The district anticipates an estimated $120,000 annual budget impact from a decrease in special education transportation reimbursement.

Attention turned to the district’s transportation plan, where recommendations aimed at reducing general education routes from 41 to 39 were discussed. The administration opted not to backfill a departing high school administrative position, reallocating it instead to maintain transportation routes. The district retained 41 routes, with internal drivers now comprising 30% of the workforce, up from 20%. Improvements in driver hiring and retention were noted as contributing factors to the successful maintenance of the transportation model.

The board also addressed the implications of legislative changes, including House File Five, which encompassed finance and policy provisions. Updates included modifications to the Reed Act and the emergency substitute teacher program, as well as a reduction in student support personnel aid. New requirements for local literacy plans and cardiac emergency response preparedness were also discussed.

A community member raised concerns over the district’s purchasing power, highlighting the financial struggles shared across the community. They advocated for a call for an election in July to address funding, referencing previous support for a $4.3 million operating levy. The board discussed the potential need for referendums to address funding gaps, with one board member emphasizing the importance of transparency with the community about the district’s financial challenges.

Long-term facility maintenance was another focal point, with discussions on roof replacements and the potential for additional funding if repairs are bundled. A projected $6 to $7 million in replacements is planned over the next decade, pending further analysis. The board also considered the impact of a proposed 5% reduction in special education transportation reimbursement in 2026 and 2027, which remains a concern despite being less severe than initially anticipated.

The meeting further explored the implications of recent legislative updates, emphasizing the need for the district to adapt to changes affecting educational quality and financial sustainability. Discussions included the importance of monitoring expenditures against projected revenues, with concerns over optimistic projections reflecting caution in future fiscal planning.

The board also addressed administrative changes, including a new assessment requirement from the Minnesota Department of Education for students in grades seven through nine. This transition necessitates updated staff development for secondary teachers. The board decided to revert to 171 instructional days for the next school year, eliminating an extra training day for the read act.