Marshall Public Schools board approves preliminary 2025-26 budget, calls $2 million operating referendum

The Marshall Public School District board on a unanimous voice vote approved a preliminary 2025-26 budget, authorized engagement of audit services and passed a resolution to place a $2,000,000 operating referendum on the fall ballot to help maintain current programs and staffing.

The action came during the board's regular meeting after the treasurer presented year-end budget considerations and Superintendent Jeremy described the referendum ask as necessary to avoid substantial cuts. “What we're looking at is a $2,000,000 operating referendum that will be proposed to maintain current programming, staffing levels, and small class sizes,” Superintendent Jeremy said. He added that without the funding “significant cuts in operations, curriculum, staffing, and services will be necessary for next year.”

The treasurer told the board the district currently shows a positive balance when comparing revenues to expenditures but called attention to timing and large upcoming payouts. “Through May, we are showing that we are at a positive about 2,300,000.0, when comparing revenues to expenditures. But that final payout, check for all teachers, and staff through the summer, which actually includes about the equivalent of 5 payrolls is, about $9,200,000,” the treasurer said, noting that those payroll-related disbursements will materially affect the audited year-end picture.

Board members discussed that the referendum mirrors the district's prior operating request and named external consultants who assisted with planning. The board will launch a public information website, Superintendent Jeremy said, and further communications and outreach are expected in coming months.

Votes at a glance

- Approval of Hoffman and Brokes fiscal year 25 audit services — Motion by Sarah Runtje; second by Jeff; approved. - Approval of the 2025-26 preliminary budget — Motion by Sarah Brink; second by Jeff; approved. - Approval of revenue authorization resolution calling a special election for a $2,000,000 operating referendum — Motion by Jeff; second by Sarah Runchy; approved. - Consent agenda and approval of May bills — motions and seconds recorded in the meeting; approved.

Discussion vs. decision

Board action approved the budget and the referendum resolution; the board did not adopt any cuts at the meeting. Discussion items that surfaced included the projected budget shortfall, reliance on state and federal funding trends, and the district's intention to use referendum revenue to maintain programs reflected in the district's skip and site plans. Staff and board described next steps as public outreach, website launch and audit preparations.

Clarifying details and context

- Referendum amount: $2,000,000 (operating referendum, proposed for the fall ballot). - Treasurer’s interim figures: district reported about a $2,300,000 positive variance through May (revenues vs. expenditures) but noted a near $9,200,000 summer payroll payout that will affect final audited balances. - Audit services: engagement approved for fiscal year 2025 audit with Hoffman and Brokes (engagement letter approved by board). - Timeline: board noted one meeting in July (July 21) and audit work scheduled for the fall; public outreach for the referendum is to begin with a website launch later the week of the meeting.

Background

Superintendent Jeremy and building leaders also reported school- and program-level results across the district, including strong reading gains at Parkside and other site-level outcomes summarized in the superintendent's monthly report. The board approved the preliminary budget and then moved to call the special election to seek voter approval of the operating referendum to cover a projected funding gap and preserve current services.

Next steps and follow-up

The district will prepare referendum outreach materials and a website, complete the fiscal-year audit this fall and finalize the 2025-26 budget after the audit and any referendum result. No specific effective dates for potential referendum revenue were discussed at the meeting.