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Board reviews proposed 2025–26 general fund budget; projects modest surplus and enrollment decline
Summary
At the May 27 meeting district staff presented the proposed 2025–26 general fund budget projecting $69.0M in revenue, $67.8M in expenditures, and an estimated $1.3M surplus that would raise the unassigned fund balance above the 14% goal; staff noted approximately 25% of revenues remain uncertain pending legislative action.
District finance staff presented the proposed 2025–26 general fund budget to the Northfield School Board on May 27, projecting total revenue just over $69 million and expenditures of about $67.8 million, leaving a projected surplus near $1.3 million and an unassigned fund balance above the district’s 14% goal.
The presentation described enrollment as the primary revenue driver and estimated 4,120.24 adjusted pupil units (APU) for 2025–26, a decline of about 37 weighted students from the current year. The finance presentation noted the basic formula APU per-student amount is projected to increase 2.74% to $7,481 per adjusted pupil unit, producing higher state revenue overall despite declining enrollment.
Staff outlined revenue categories: state sources (about 70% of revenue), local property taxes (slightly less than the prior year), federal funds (declining as ESSER funds wind down), and local sources (including fee increases). The presentation also noted a newly budgeted transportation fee of $250 per student for eligible riders, capped at $500 per family; that fee is estimated to generate about $100,000 based on an estimate of roughly 400 paying students.
Staff said the district expects approximately $225,000 in summer-unemployment-insurance reimbursement revenue that was not anticipated earlier, and reiterated that special-education funding remains a primary uncertainty. Staff estimated roughly 25% of the district’s revenue projections still depend on legislative outcomes and formula decisions, and described the district’s fund-balance target (14%) as a buffer for potential funding delays.
On expenditures, staff said about 80% of the budget is salaries and benefits. The draft assumes ongoing contract negotiations with the Northfield Education Association and factors for retirement and benefit cost increases. The proposed budget will be an action item at the June 9 board meeting; the May 27 presentation included board member questions about the draw schedule, summer-unemployment-insurance revenue timing and the transportation-fee estimate.
