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Albert Lea Schools adopt final 2024-25 budget and approve preliminary 2025-26 budget with $2 million in reductions
Summary
The Albert Lea Public School District approved its final fiscal 2024-25 budget and approved a preliminary budget for fiscal 2025-26 that incorporates roughly $2 million in planned reductions and preserves a roughly 12% general-fund reserve.
Albert Lea Public School District trustees approved the district—s final fiscal year 2024-25 budget and voted to adopt a preliminary fiscal year 2025-26 budget at the board meeting, each motion passing unanimously, 5-0.
The final 2024-25 budget presented to the board showed total general-fund revenue of $60,646,002.66 and an estimated ending general-fund balance of 11.63 percent. For the preliminary 2025-26 budget the district projects a 12.18 percent general-fund balance and a notional beginning general-fund fund balance of $7,414,401 on July 1, 2025.
The budgets reflect several adjustments and assumptions the district staff highlighted as material to next year—s finances. The board heard that the district reduced expenditures by approximately $2,000,000 this spring for implementation in fiscal 2025-26; those reductions, along with benefit and revenue assumptions, produce the preliminary 12.18 percent projection. The presentation noted an assumed employer TRA (teacher retirement) contribution increase to 9.81 percent, an adopted 10 percent health insurance increase, a 17 percent property insurance increase, and the planned sunsetting of many ESSER (COVID-era federal) funds. Staff also budgeted a partial-year Minnesota paid-leave payroll tax rate (0.44 percent for half the year) and noted that special-education transportation reimbursement will be paid at 95 percent in fiscal 2026 (and 90 percent in fiscal 2027).
Board and staff described enrollment and ADM (average daily membership) as a key driver of state aid. For the final 2024-25 budget the district used an ADM estimate of 3,328 students. Staff also described one-time or timing-driven items that affect year-to-year comparisons, including REED Act receipts, unemployment reimbursements, and capital spending timing tied to bond proceeds and construction projects.
Paul Durban, staff presenter, told the board the district—s audited close and the independent audit firm Smith and Schaeffer would follow in the fall to finalize year-end accounting entries. Superintendent David Krenz and multiple board members praised staff work to reduce expenditures and specifically thanked the Tiger Club/childcare director and community education staff for bringing that program out of a previously projected deficit.
Board action: The motion to approve the final 2024-25 budget passed 5-0. The subsequent motion to approve the preliminary 2025-26 budget also passed 5-0.
The board directed staff to return with levy certification and audit materials later in the year and discussed plans for a September finance-committee update and a winter audit presentation. Staff emphasized that the preliminary budget is an estimate and that the district will revise budgets once final state revenue numbers and audit adjustments are available.
Ending
Board members signaled continued attention to the district—s long-term fiscal sustainability, with plans for further committee-level examination and an audit-based report in the fall.
