In the meeting, a portion was dedicated to the Truth in Taxation hearing, where the 2025 budget and proposed tax levies were scrutinized. The district faces a projected deficit of approximately $135,000 in the general fund for the current budget year, with revenues estimated at $10.866 million, below the expenses exceeding $11 million. The board emphasized that the school district’s funding primarily comes from federal, state, local fees, and property taxes, with the State of Minnesota providing the largest share. A notable concern was the gap in the general formula allowance per pupil unit, currently at $1,364, which has not kept pace with inflation. The state has allowed the formula to be adjusted based on the Consumer Price Index (CPI), but sustainability questions remain.

The audit presentation further illuminated the district’s financial situation, showing a clean opinion on the fiscal year 2024 audit but highlighting an internal control finding due to limited segregation of duties, a common issue in smaller districts. The audit also revealed an increase in the district’s unrestricted fund balance to 17.5%, despite previous fiscal challenges, attributed to higher-than-anticipated tax collections and additional student activity revenue.

A detailed examination of special education costs revealed a troubling trend, with expenditures rising due to increased needs among students. The district’s special education costs are impacted by placements at facilities like RiverBend, which provide intensive support. Federal funding currently covers only about 15-16% of these costs, far short of the promised 40%, necessitating the use of general education funds to subsidize these expenses. This shortfall prompted discussions about strategies to manage these increasing costs while maintaining financial health.

The meeting also covered changes in property tax values, noting a 29% increase in net tax capacity last year, driven by agricultural land values. However, a downturn is anticipated for the coming year, particularly affecting agricultural values. Taxpayers were reminded of their right to challenge property valuations, with notices sent in March before tax statements. The board explained that property taxes are influenced by estimated market value, property classification, and the tax levy set by local jurisdictions.

A transition from the “World’s Best Workforce” framework to “Comprehensive Achievement and Civic Readiness” was discussed, involving approximately seven policy changes to align with legislative updates. The board emphasized new educational goals, such as achieving a 90% success rate for four-year-old preschool students in phonological awareness and literacy by spring 2025. However, current progress shows room for improvement, with only 60.9% meeting low-risk criteria on reading assessments.

The challenges of supporting students with language barriers were highlighted, with particular attention to a recent case of a Hispanic student from South America requiring assistance due to limited English proficiency. The board discussed the complexities of placing such students appropriately within grade structures and the efforts needed to help them meet state graduation requirements.

Amid these discussions, the board also reported on community engagement efforts related to the superintendent search process, building updates, and student activities. The importance of community input was underscored with plans for public feedback on the superintendent search and surveys distributed regarding future site utilization.