The meeting began with an in-depth report on special education finances for the 2023-2024 and 2024-2025 school years. The presentation highlighted a projected decrease in expenditures from $3.3 million to approximately $2.941 million, attributed to efficiencies such as shared staffing between districts. Despite this reduction, state reimbursements are expected to fall from $2.750 million to $2.613 million, correlating with the reduced spending. Unreimbursed costs, which represent expenses the district cannot recover, are anticipated to drop from $557,000 to $328,000.

The board also discussed the implications of potential state budget cuts to special education, with concerns about a blue ribbon task force aiming to reduce funding by $250 million. The possibility of increased unreimbursed costs was identified as a challenge if state funding decreases. In response to questions, it was explained that the district’s strategy involves maintaining quality services while minimizing costs, despite the uncertain financial landscape.

Medical assistance revenue emerged as a bright spot, with a notable increase due to improved billing practices. From just $17,000 in the 2022-2023 school year, revenue surged to $133,867 in 2024-2025. This improvement was attributed to better paperwork completion by staff, which has enhanced reimbursement opportunities.

The board then turned its attention to student representation in district leadership. Concerns were raised about the need for broader student involvement beyond the high-achieving members of the National Honor Society. While approximately 15 to 16 students currently participate in meetings, they primarily represent top performers. The board plans to address this by inviting juniors and seniors to share their school experiences in upcoming meetings, followed by sophomores and freshmen.

In the superintendent’s report, attendance at the Minnesota Rural Education Association conference was highlighted. The event focused on financial issues and advocacy for rural education, including a potential new equalization plan for school funding aimed at alleviating tax burdens for homeowners. Insights from the conference included strategies for passing school referendums through enhanced community and staff engagement.

The superintendent also shared plans for future staff development, inspired by recognizing teachers of excellence across Minnesota. The board discussed budget adjustments, with concerns about the timing of notifications to impacted teachers. A suggestion was made to meet in mid-January to explore options and potentially schedule additional meetings.

Further discussions included the achievement report presented by a district representative, which outlined goals for the 2024-2025 school year. Key areas included early childhood education, narrowing achievement gaps, and college and career readiness. Notably, the reading and math gaps between student groups have narrowed, and efforts to increase student participation in Career and Technical Education opportunities are ongoing. The achievement report will be posted on the district’s website for public access.

Despite positive developments, the failed referendum remained a topic of concern, influencing discussions about future financial decisions. The board acknowledged the need for planning sessions to address budget priorities and potential cuts.