Farmington board reviews 2024-25 budget amendment, finance committee proposes $2 million realignment

Director Jane Houska presented an amendment to the Farmington Public School District’s 2024–25 budget on Feb. 5, saying changes in enrollment counts and state revenue projections require board review before the district finalizes year-end numbers.

“Budget? Really, it's a guide. It's a tool,” Director Jane Houska said, opening the presentation and walking the board through the district’s average daily membership (ADM) accounting and how enrollment timing affects revenue assumptions.

Houska told the board the largest single driver of the proposed revenue increase — roughly $1.2–$1.4 million — is special education. She said the district will download the state’s most recent revenue projection model, update it with local October 1 enrollment counts and compare that to the adopted budget before bringing a formal amended budget for board action.

Why it matters: The amendment would reduce the planned draw on assigned fund balance and update revenue and expenditure assumptions before the district finalizes its year-end accounting. Houska described the district’s adopted 2024–25 plan as balanced but using $2.7 million of assigned fund balance; the updated figures would raise revenue and leave assigned and unassigned balances within district policy ranges.

Key details and committee recommendations

- Enrollment and revenue: Houska explained ADM is calculated as portions of full-year enrollment; the district’s October 1 resident ADM was 6,461 against a 2024–25 projection of 6,393. She recommended not changing enrollment-based staffing numbers at this time, because enrollment continues to fluctuate through the year.

- Revenue drivers: Special education revenue accounted for the largest portion of the projected revenue increase. Houska said the district saw smaller fluctuations in federal and miscellaneous revenue; student-activity revenue is treated as a restricted reserve sourced from contributions and fundraising, not property taxes or state funds.

- Finance committee realignment: The finance committee summarized actions already taken (approved Jan. 27) that reduced the projected deficit by about $2.1 million, including elimination of the MNCAPS partnership, restructuring of the middle school, CTE changes and modest revenue increases (athletics, parking, transaction fees and community ed charge-backs). Those actions left an estimated gap of roughly $2.3 million.

- Additional proposed reductions: The committee recommended approximately $685,000 in reductions including aligning elementary specialists to enrollment (about 2.5 FTE; ~$250,000), repurposing or eliminating selected building positions (health aide, counselor adjustments), eliminating historical cell-phone stipends and not replacing a high-school assistant principal on leave. The package of reductions the committee discussed totaled about $2.2 million when combined with earlier actions.

- Targeted enhancements: The committee proposed about $710,000 in targeted investments, including a short-term Certified Nursing Assistant (CNA) course partnership (estimated $60,000 total: ~$45,000 equipment, ~$15,000 instructor), a 0.5 FTE pathway coordinator (~$50,000) to develop CTE pathways and investments for math intervention and to support a multi-aged (Riverview) program. Committee members said these investments are intended to preserve key programs while the district right-sizes staffing to February 1 enrollment counts.

- Fund balance: After reductions, enhancements and revenue increases (about $550,000), the committee recommended using remaining assigned fund balance to offset the remainder of the projected gap. Houska reiterated that the formal amended budget and any right-sizing aligned to February 1 enrollment will return to the board for action at the end of the month.

What was said about program changes

- MNCAPS and CTE: The board previously approved discontinuing the MNCAPS partnership and related CTE offerings at a net savings included in the January actions. District staff described ongoing work to replace portions of the healthcare pathway locally (CNA coursework through a community college partner) and to plan long-term pathway coordination.

- Riverview multi-aged program: Board and staff described Riverview’s multi-aged classroom as opt-in and noted enrollment declines at that school; staff recommended adding one FTE to preserve the program’s 2–5 configuration next year while working with families to balance sections.

Process and next steps

Director Houska and the finance committee asked the board to consider the recommendations as a realignment package and to expect a formal amended budget and staffing recommendations at the next regular meeting for final vote. The board acknowledged community listening sessions held in January and early February that informed the committee’s proposals.

Votes at a glance

- Approval of the agenda: Motion by Gorman, second by DeWille. Chair Christensen called for a voice vote; the board approved the agenda (voice vote: all in favor). (Record: motion made and seconded; voice ballot; individual roll-call not recorded in transcript.)

- Motion to move to closed session: Motion by Johnson, second by Gorman to move to closed session pursuant to Minnesota Statutes 13D.03 to discuss labor negotiation strategy; motion passed on a voice vote. (Chair Christensen called for the motion; transcript records the motion and the voice vote.)

Ending note

Board members and staff said they will reconvene with the formal amended budget and staffing proposals later in the month; no final budget votes were taken at this meeting.