Richfield Public Schools board approves FY26 budget with $1.1 million general‑fund drawdown

The Richfield Public Schools Board of Education voted to approve the districts fiscal year 2026 proposed budget at its June 23 regular meeting, adopting a $115.8 million all‑funds plan that projects a $1,119,399 decline in the general fund balance.

Board members voted in favor after a presentation by district finance staff; Director Powellson moved to approve the budget "as presented," and Director Liss seconded the motion. Chair Portia Eric Carter cast the deciding aye when members voted by voice.

The budget presentation described updated enrollment and revenue assumptions that reduced the districts projected average daily membership (ADM) by 131 students to 3,895 for preK–12 and incorporated recent legislative changes. State revenue for FY26 is projected at $61,588,000 and total proposed expenditures across funds are $118,748,628, producing a roughly $2.9 million net spending variance across all funds driven largely by general fund and construction spending.

Finance staff reported a projected unassigned general fund balance of $8.5 million at year end (about 9.29 percent of expenditures), inside the boards 4–10 percent policy range but down roughly $920,000 from the current projection. The district plans to use assigned one‑time COVID funds and other restricted accounts in part to smooth the transition while it addresses recurring cost pressures such as a 10 percent increase in health insurance premiums and inflation in other areas.

Presenters highlighted that special education revenues increased in FY26 modeling — reflecting changes in the special‑education funding formula and some programmatic shifts — while some categorical aids were trimmed in the recent state budget (student support services aid and library aid). Projected construction expenditures of roughly $1.65 million are expected to spend down most of the districts construction reserves in FY26; the long‑term facilities maintenance levy and plan were approved separately at the meeting.

Board members asked for follow up on several metrics discussed during the presentation, including how the district counts students in college credit–bearing classes versus PSEO and the drivers of projected special education costs. Finance staff said final state aid amounts will not be known until next spring and that administrators will return with additional detail as numbers are finalized.

The board approved the FY26 budget after the presentation and a short discussion; the administration said it will finalize the adopted budget before the June 30 statutory deadline and return with any needed clarifications in subsequent meetings.

Looking ahead, presenters warned that fiscal pressures remain: the FY26 plan relies in part on one‑time reserves and the district will monitor state funding and enrollment trends as it prepares longer‑term projections.