Grand Forks board approves FY26 budget, certifies 129.85-mill levy amid projected deficit

The Grand Forks School Board on Monday approved the district's fiscal year 2026 budget and certified a total tax levy of 129.85 mills, despite presentations from administration showing the general fund likely will end the year with expenditures exceeding revenues.

The district's finance lead, Mr. Baumbach, told the board administration's final figures put the district on a path to "expenditure over revenue by 4,400,000.0" for FY26 after updated enrollment and revenue estimates. The board voted 9-0 to adopt the budget and levy; the motion was moved by Dr. Hodak and seconded by Mr. Cleven.

Administrators said several factors combined to worsen the district's fiscal picture: an unexpected drop in fall enrollment (reported as 157 fewer students since the preliminary budget), reductions in some federal Title grants, and state property-tax caps that limit growth in levy revenue. "When you take that times their per pupil calculation of just over $11,000 each, that has really put us in this reality of the budget," Baumbach said during his presentation.

Why it matters: The approval commits the levy certificate to the county auditor and establishes the spending plan for the coming year, but it also set in motion a district-wide budget realignment process. Administrators said they expect to conduct a series of stakeholder meetings, building-level conversations and board retreats over the next five months to identify expenditure reductions and priorities for the general fund.

Board members emphasized the difficulty of the choices ahead. Dr. Lund urged a nonpartisan, comprehensive review: "There should be no sacred cows when we're looking at the budget." Dr. Brenner, the superintendent, described a new, more intensive engagement process in which central administrators and district leaders are meeting with building principals to identify local options to reduce costs and realign resources.

Key figures and constraints discussed during the meeting included: - A reported projected FY26 shortfall in the range of $4.4 million if no further adjustments are made. (Mr. Baumbach) - An anticipated general fund ending balance of roughly $3,000,000 under the adopted budget, below the board's stated target of 15% reserves for future years. (Presentation slides summarized by administration) - Enrollment decline used in calculations: 157 fewer students from prior projections; per-pupil revenue roughly $11,000 used in the board presentation. - Property-tax cap mechanics: administrators explained that state caps limited levy growth (administration said aggregate mills would be reduced from 130.68 to 129.85 to comply with caps), a change that reduces locally available revenue.

Administration recommended an immediate budget realignment process, including: - Building-level visits and intimate conversations with principals and directors to solicit ideas for cost reductions this fiscal year and planning for FY27. - Public engagement and regular board updates, with anticipated realignment decisions targeted around March 2026 to set clearer budgets for the next fiscal year.

Board reaction and next steps: Several members expressed support for the proposed process while acknowledging the political and operational difficulty of cuts or reallocation. Dr. Hodak urged public communication about the causes of the shortfall, calling the current situation a "triple threat" of federal funding changes, state funding outcomes and the property-tax cap. Ms. Flynn and others pressed staff for more clarity about which federal grants had changed and how much of the shortfall was tied to those grants.

The board concluded by voting to approve the FY26 budget and to certify the mill levy certificate calling for a total levy of 129.85 mills. Administration said it will pursue the realignment process immediately, with building visits, retreats and public engagement planned in the coming months.