Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the District Budget topic
No spam. Unsubscribe anytime.
Preliminary 2025–26 district budget projects $1.9 million deficit; board hears risks from special education aid and paid family medical leave
Summary
Director of Business Services Chris Blackburn presented the 2025–26 preliminary general fund budget to the South Washington County Schools Board, outlining a projected $1.9 million shortfall, fund‑balance decline, enrollment risks and statutory changes that could affect future aid and costs.
Chris Blackburn, Director of Business Services, presented the South Washington County Schools preliminary 2025–26 general fund budget at the June 12 meeting and told the board the district projects a $1.9 million deficit on a $350.6 million preliminary general fund budget.
Blackburn reviewed revenue drivers: the district is about 70% state‑aid driven, supplemented by local levies (property taxes) and small federal shares (about 1.5%). He said state basic formula increases and modest projected enrollment growth are included in estimates; the district models salaries and benefits at the individual level because roughly 78% of expenditures are personnel costs.
On fund balance, Blackburn said the district previously reached a 17.2% unassigned fund balance but the preliminary 2025–26 budget would reduce that percentage to about 13.9%. Board policy calls for a 16.6% target by 2027; Blackburn said the district built reserves to weather anticipated or unanticipated costs but faces near‑term pressures.
Key risk areas and changes identified:
• Special education transportation aid: Blackburn said the budget reflected an anticipated 95% reduction in reimbursement for special education transportation aid and that the change was memorialized in special‑session legislation. He said that factor had already been reflected in the preliminary figures.
• Paid Family Medical Leave: Blackburn flagged the new state‑administered paid family medical leave program, effective Jan. 1, 2026. The program will be financed by a payroll tax (about 0.88% point) split at least 50/50 between employer and employee; Blackburn estimated the employer share will be material and said district staff are modeling roughly a $500,000 annual impact, subject to administrative rules and program use patterns.
• Enrollment uncertainty: Blackburn said the district projects a small enrollment increase (about 79 students) for 2025–26 but warned of longer‑term declines tied to the planned expansion of a nearby Minnesota School of Academics (MSA) that could reduce district students and create fiscal pressure.
Blackburn summarized programmatic spending increases in student‑centered categories (instruction, special education and pupil support) and said administrative and district support spending is down in the proposed budget. He also described the composition of restricted funds (nutrition, community service, construction, OPEB) that do not count toward the unassigned fund balance.
The board will be asked to approve the preliminary budget at a later meeting; Blackburn outlined the district schedule for audit, levy certification work and final budget adoption through December and January.
