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District approves preliminary budget guidelines as CFO warns of multi‑million dollar shortfall
Summary
The school board approved preliminary budget guidelines and assumptions after Chief Financial Officer Marie and staff outlined a projected shortfall driven by rising personnel costs, unfunded mandates and curriculum purchases.
The Stillwater Area Public Schools board voted to approve preliminary budget guidelines after Chief Financial Officer Marie presented a fiscal forecast showing a multi‑million dollar shortfall over the next two years.
Why it matters: the forecast projects growing personnel and benefit costs, uncertain state funding and one‑time curriculum and technology needs. Staff said the district is below its fund‑balance policy target and will need board guidance on a timeline to restore reserves.
What staff told the board CFO Marie said the district is preparing next year’s budget using current formulas and known revenues. She projected enrollment at 8,205 students for fiscal 2026 and said the budget exercise uses the district’s approved levy and current federal and state entitlements.
Marie said projected revenue increases are modest while expenditures would rise by an estimated $7.9 million for fiscal 2026 based on current staffing, negotiated salary/benefit assumptions and inflation. The presentation highlighted: - Total general fund budget for the current year: about $149.3 million (district figure presented by staff). - Projected expenditures for fiscal 2026: about $158.1 million (staff projection) producing roughly a $6.2 million gap versus current-year revenue if no additional changes are made. - Curriculum purchase (one-time): staff proposed using operating capital to buy curriculum (about $1.4 million), leaving an estimated remaining gap of roughly $4.8 million to be addressed through reductions or other changes. - Unassigned fund balance: the district’s unassigned reserve was reported at about 1.1% of the general fund (approximately $1.7 million), below the board’s 5% target.
Mandates and uncertainty Marie and Superintendent Dr. Funk flagged state mandates and benefit changes as key uncertainties. The board discussed paid family leave, summer-unemployment reimbursement and unemployment trends; Marie said the district has added assumptions for some of those costs in benefits projections but that actual costs depend on future state actions.
Board direction and next steps Board members asked whether the board should set a timeline for returning unassigned fund balance to 5%. Directors said doing so quickly could require program cuts; others sought more information before committing to a phased plan. Marie said she will return with refined projections and that staff will continue priority-based budgeting work and present updates in March.
Votes and formal action The board approved the preliminary budget guidelines and assumptions (motion moved and seconded at the meeting) by voice vote. Staff will bring budget updates and refined scenarios to future meetings.
Ending: Marie and staff said they will update the board in March with enrollment-finalized staffing allocations and additional budget scenarios for trustee review.
