A topic centered on the financial update presented by Chris Blackburn, the director of business services. Blackburn reported that nearly $6.8 million in federal K-12 funding, expected on June 30, 2025, will not be released as scheduled. The sudden notice has left the district with limited time to adjust its plans, affecting several programs, including adult and literacy education. However, Title 1A, IDEA funds, and the national school lunch program remain unaffected. This unexpected delay means the district will need to cover most costs for the 2025-26 school year, posing significant challenges given the limited flexibility in budget adjustments after contractual staffing allocations.

The district is also grappling with state funding changes. Blackburn detailed the impact of a legislative delay that postpones a new compensatory revenue funding formula until the 2026-27 school year. This delay temporarily alleviates some financial pressure, allowing districts to allocate up to 40% of compensatory revenue for district-wide initiatives in the 2025-26 and 2026-27 school years. Despite this relief, upcoming cuts in special education transportation aid and student personnel aid will affect the budget. The anticipated reduction in special education transportation aid, set to decrease to 95% for the 2025-26 school year, is expected to cost the district over $750,000.

Blackburn also highlighted the newly established blue ribbon commission tasked with developing a plan to reduce state appropriations by $250 million over the next biennium, which may further impact funding allocations. Additionally, cuts in student personnel aid and school library aid are projected to result in losses of approximately $384,000 and $120,000, respectively, for the 2025-26 school year. The district will also see a loss of nearly $34,000 in achievement integration revenue due to an increased administrative retention rate.

In response to these fiscal challenges, the board approved the fiscal year 2027 long-term facilities maintenance (LTFM) program budget, which includes a $597,600 budget for the Northeast Metro 916 Intermediate School District’s LTFM program. South Washington County Schools will contribute $118,183, levied with taxes payable in 2026. The approval of the LTFM 10-year plan, which details allowable uses of LTFM revenue for health and safety capital projects and maintenance tasks, ensures compliance with Minnesota Department of Education regulations.

The board also approved the sale of general obligation school building and facilities maintenance bonds series 2026A, following voter approval in November 2023 for $200 million in school expansions and renovations. This includes a bond sale planned for early 2026 to fund various LTFM projects, with a principal amount of $131,820,000 in bonds to be issued. The strategic approach of conducting two separate bond issues aims to minimize interest costs.

Additionally, the board set a date for the general election of school board members on November 4, 2025, for four members to serve four-year terms. This resolution passed without questions.

In other developments, the board approved the dissolution of a cooperative girls hockey team hosted by Woodbury High School. Assistant Superintendent Christine Schaefer explained that Woodbury now has enough student athletes to support its own program, reflecting increased participation and interest among students. The motion for dissolution had already received the necessary approvals from activities directors of the participating schools.

Schaefer also proposed an adjustment to the school calendar for March 31, 2026, currently designated for MCA testing and asynchronous learning. The proposal, aimed at improving student participation, converts the day to in-person instruction for grades 9 through 12, allowing assessments to be conducted during regular school hours with an adaptive bell schedule. The board approved the calendar change after confirming that arrangements for online students to participate in testing would be made.