Brainerd School Board reviews 2025-2026 preliminary budget amid significant deficit concerns

The Brainerd School Board meeting on June 9, 2025, highlighted significant financial challenges as the board reviewed the preliminary budget for the 2025-2026 school year. The meeting revealed a projected deficit of $2.2 million in the unassigned fund balance, raising concerns among board members about the sustainability of the district's financial health.

Director Marcy Lort presented the budget, noting a projected decrease in student enrollment by 121 students, which directly impacts funding. The board discussed the implications of recent legislative changes, including a 2.74% inflationary factor affecting the budget and a decrease in compensatory revenue due to changes in the free lunch formula. These factors contribute to the district's financial strain, with board members expressing urgency in addressing the growing deficit.

Concerns were raised about the long-term viability of the budget, with some members suggesting that the district may need to consider staffing reductions in response to declining enrollment. The discussion also touched on the need for a potential operating referendum to alleviate financial pressures, as the board acknowledged the difficulty of balancing the budget without additional revenue sources.

As the board moved towards a vote on the preliminary budget, members emphasized the importance of revisiting the budget in the coming months to make necessary adjustments based on actual enrollment figures and state funding updates. The meeting concluded with a call for further discussions on how to address the district's financial challenges effectively, underscoring the need for strategic planning to ensure the sustainability of educational services in the Brainerd area.