A significant portion of the meeting addressed the district’s financial forecast, revealing that expenditures are expected to outpace revenues in the coming years. The district’s fund balance, likened to a checkbook, is projected to decrease annually, potentially leading to statutory operating debt by the 2028-2029 school year. The district faces a deficit projection of minus 6% if adjustments are not made. To prevent this outcome, a series of $10 million adjustments yearly for the next three years was proposed. This fiscal imbalance is largely due to the state not adjusting funding in line with inflation, which has left a $30 million gap for the current year. Declining enrollment further complicates the district’s financial health, particularly with the expansion of the Math and Science Academy and the Woodbury Leadership Academy drawing potential students away.

The enrollment decline is a concern for the district’s budget planning, as fewer students lead to reduced funding from the state. Projections show a sharper decline in the 2026-2027 school year, exacerbated by the aforementioned expansions. This decline in enrollment affects revenue, as the basic funding formula accounts for a portion of the district’s budget. Future adjustments are tied to inflation, but the possibility of legislative changes adds another layer of uncertainty. Special education funding cuts also pose a challenge, with transportation reimbursement decreasing from 100% to 95%, resulting in a $750,000 revenue loss for the next school year.

Board members discussed the importance of maintaining small class sizes and the balance between fiscal responsibility and educational quality. Staffing decisions were highlighted as crucial, with the board noting that staffing contracts, once set, cannot be adjusted until the following year. This highlights the need for careful planning to avoid overstaffing in light of the anticipated student loss.

In addition to financial matters, the board addressed literacy initiatives across the district. Over 1,400 educators participated in structured literacy training to improve classroom instruction. The district’s approach to literacy is comprehensive, surpassing legislative requirements, with a focus on training all educators, regardless of their subject area. This initiative is part of the district’s response to the Read Act, which aims to ensure all children read at or above grade level starting in kindergarten. The district employs universal screening tools like FastBridge and MAP tests to identify students needing additional support.

The board also discussed data from standardized tests, such as the Minnesota Comprehensive Assessments (MCA) and the preACT, noting discrepancies in scores and the need for improvements. Concerns were raised about the potential for standards to be relaxed to improve these numbers. The district emphasized the importance of maintaining academic rigor and ensuring that teaching does not solely cater to standardized tests.

Open enrollment policies were another key topic, with the board deciding to adopt a flexible approach, allowing for at least 1% of students per grade level to enroll from outside the district. This decision considers the varying capacities of school buildings, with caps on enrollment when a building reaches a certain capacity. The timeline for open enrollment applications and the impact of the new Math and Science Academy on student enrollment were also discussed.

Finally, the meeting included a review of the board governance plan and the importance of board self-evaluations. The board acknowledged the need for professional development and the significance of self-evaluation processes in influencing student outcomes. The meeting concluded with a closed session for the superintendent evaluation, with no actions expected to follow.