Fargo school board adopts 2025-26 budget, projects multimillion-dollar deficit and 7-1 vote

The Fargo Board of Education on Tuesday adopted final budgets for the 2025-26 school year and instructed administrators to submit a certificate of levy to the county auditor, approving a levy of approximately $93,560,000. The motion carried on a 7-1 roll call vote after trustees and staff described a persistent multimillion-dollar deficit and urged planning to correct it.

Board member Greg, who moved the motion, told the board, “we ended last fiscal year, with a multimillion dollar deficit,” and said the current budget also projects a multimillion-dollar shortfall. “If we act quickly, really, we're talking about about a 1% correction to the budget,” Greg said, urging timely action to avoid larger cuts in future years.

Finance presenter Jackie, a district staff member, reviewed revenue and expenditure details and said the district’s general fund balance can cover the shortfall this year but that the trend is unsustainable. Jackie told the board the district will “be right at that 15%” minimum fund balance the board maintains and that administrators will monitor spending closely during the year.

Why this matters: Adopting the final budget fixes the district’s property tax levy with the county and locks in spending priorities for the year. Trustees and administration signaled they will pursue planning and committee work to narrow the projected deficit before it requires deeper reductions.

Key numbers and levers: Jackie said the district is tracking several specific levy components inside the general fund: a tuition levy — intended to offset costs for educating students placed outside the district, including some special-education placements and career/technical tuition — estimated at just under 5 mills, and a miscellaneous levy that can be raised up to 12 mills. Jackie also noted most of the district’s tax revenue increase comes from new property growth in the city rather than higher property valuations, and that the district lowered its expected property tax collection rate from 95% to 92% because of recent delinquencies.

Jackie walked the board through other funds the budget covers. The building fund revenue and expenditures depend on project timing; the district expects bond proceeds tied to a planned Northside Elementary School project to affect the fund in coming years. The special assessments fund requires no levy next year after the district paid off remaining Ed Clapp assessments in 2025, Jackie said. Debt service could rise slightly depending on the timing of new bond issuance.

Board discussion and next steps: Trustees emphasized that solving the structural shortfall will be a top priority. Greg asked all trustees, not only planning-committee members, to bring ideas to planning committee meetings. Trustee Robin, who cast the lone no vote, expressed “grave concerns about approving a deficit two years in a row” even while acknowledging the board‑approved cash‑flow buffers. Several trustees thanked administration and planning staff and encouraged broad participation in deficit mitigation work.

Formal action: Greg moved to adopt the final budgets and levy the stated total and to instruct administration to submit the levy certificate to the county auditor; Allie seconded. The board approved the motion on a roll call vote of 7 in favor and 1 opposed.

The district’s administration said more detailed budget documents will be posted on the district website and that trustees can expect regular updates from planning committees as they work to align revenues and expenditures during the fiscal year.