Prior Lake-Savage Area Schools outline $4 million annual reductions; board and parents press for alternatives

Prior Lake-Savage Area Schools administrators told the board in a study-session presentation that the district must identify roughly $4 million in annual reductions starting in fiscal 2025–26 to address long-term fund balance declines and flat enrollment.

The district’s superintendent, Dr. Thomas, and finance staff member Tammy outlined revenue projections and spending assumptions and presented a package of staffing and program changes administration says would achieve the target while trying to limit classroom impacts. Tammy said the district’s revenue projections for 2025–26 assume a flat enrollment and formula-driven state aid and noted several categories of restricted, formula-based funding the district must spend as directed by statute.

Why it matters: The proposals would change course offerings at middle schools, reduce some special‑education paraprofessional scheduling, remove third‑grade SAGE screening and end the district’s high‑school online program. Board members and parents said several proposed cuts risked undermining programs the district identifies in its strategic plan and could prompt families to seek alternatives outside the district.

Topline numbers and timing Tammy presented the district’s revenue picture: the district’s multi‑year forecast assumes roughly flat enrollment, a basic formula aid of $7,465 per pupil unit in the current projection, and levy and other revenue that together produce a 2025–26 revenue projection the administration described in the presentation (figures cited in the presentation were approximate and rounded). The board has previously authorized use of fund balance in the current year for one‑time needs; administration said continued use of fund balance is not sustainable and that the $4 million number reflects recurring, structural adjustments they expect will be necessary if revenues do not increase.

Administrators emphasized scheduling constraints and a calendar: staffing allocations for schools are usually set shortly after the January study period; administrators said moving elements of the…