The most notable topic at the meeting was the district’s enrollment figures, which have raised financial concerns. A board member expressed apprehension about the bond referendum that was initially based on an enrollment projection of 10,000 students. This discrepancy has prompted questions about the rising costs in the face of declining student numbers. While it was noted that enrollment declines were exacerbated during the COVID-19 pandemic, recent projections suggest a more optimistic outlook, with current monthly figures surpassing those of previous years. Although the anticipated growth did not materialize post-pandemic, the district remains hopeful for gradual increases moving forward.

The board also tackled the issue of rising expenses, which are primarily attributed to cost-of-living adjustments rather than any significant programmatic expansion. A detailed presentation on average increases in salary and benefits was requested to clarify financial projections. Additionally, the allocation of funds toward support services was scrutinized, with a query on how the district’s $26.1 million in support services compares to state and national benchmarks. It was mentioned that the district’s budget structure is aligned with the Minnesota Department of Education’s requirements, facilitating comparisons with other districts, though caution was advised regarding potential inconsistencies in data categorization.

The financial discussion extended to fixed asset management, highlighting the careful process of asset capitalization for expenses over $10,000. The district is currently implementing a new asset management software in the technology department while the buildings and grounds department uses spreadsheets to monitor needs.

Another focal point of the meeting was the detailed presentation on the ALC by Dr. Gillespie and his team, which underscored the importance of the center’s mission. With an enrollment of approximately 182 students, the ALC has seen a 30 to 40 percent increase as the year progresses. The graduation rate has notably risen to 77.5%. The center’s honor roll system, based on credits earned rather than traditional criteria, saw 50% of students recognized this year.

The ALC’s community engagement efforts were highlighted, including successful family nights that attracted numerous participants and fostered a positive environment. The adviser system at the ALC, where students work with the same adviser throughout their time, was noted as a key connection point for families. An upcoming program review in partnership with district 916 aims to evaluate the ALC’s successes and explore student pathways to graduation, with discussions about potentially transitioning to an Area Learning Program (ALP) to focus more on high school offerings.

Concerns were raised about maintaining the ALC designation, as it involves providing targeted services to elementary students and operating a middle school program. The review will also address accurate attendance reporting to secure adequate funding, a critical aspect of the program assessment. Questions arose about the referral process for students entering the ALC, emphasizing the need for clear qualification criteria.

The ALC’s capacity and functionality were also discussed, particularly regarding summer school programs. The center can accommodate around 300 students during the summer, with a portion coming from other districts. The ALC’s role in serving elementary and middle school students was clarified, with acknowledgment that while the ALC meets compliance standards, opportunities for enhancement exist.

In terms of budget discussions, Mr. Wald and Miss Johnson presented the preliminary budget for fiscal year 2526. With projected revenues just under $147 million and expenses slightly exceeding this amount, a deficit of approximately $500,000 is anticipated. The unassigned fund balance is expected to align closely with the 8% target set by school board policy, though projections for fiscal year 2627 suggest it may fall below this requirement, necessitating future budget adjustments.