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Sartell‑St. Stephen board approves preliminary 2025‑26 budget, projects $6.9M unassigned fund balance
Summary
The Sartell‑St. Stephen School Board approved a preliminary budget for fiscal 2025‑26 that projects an unassigned fund balance of just over $6.9 million (about 12%); board and staff highlighted enrollment shifts, one‑time revenue losses and legislative changes that shaped the plan.
The Sartell‑St. Stephen School Board voted to approve the district'025'026 preliminary budget at its June regular meeting, preserving a projected unassigned fund balance of just over $6.9 million (about 12% of expenditures) while planning for a modest drawdown in reserves.
The approved budget, presented by district finance director Joe Parker, reflects enrollment and formula changes that together produce both new revenue and several one‑time funding reductions. Parker told the board, “we are projecting a ... fund balance as of 06/30/2026 of just over $6,900,000 or 12%.”
Board members said the preliminary plan sets staffing and program priorities while acknowledging near‑term pressures. The motion to approve the budget was made by Vice Chair Matt Morley and seconded by Treasurer Chelsea Phelan; the board approved the motion by voice vote.
District staff said the budget package counts a net increase of roughly 39 students K‑12 year over year, a change equivalent to about 36 adjusted pupil units and a roughly $266,000 reduction in formula revenue tied only to the pupil‑unit shift. Parker noted other formula and legislative impacts: an increase in basic general education aid tied to the per‑unit formula, a projected roughly $230,000 increase in state special education aid, and several one‑time revenues from the prior year that will not recur.
Parker told the board the general fund faces a preliminary operating deficit in the plan: "this comes to a total deficit of just over $1,100,000 in the general fund," while clarifying that the portion affecting the unassigned fund balance is smaller (about $545,000). He attributed much of the apparent gap to one‑time grants and prior‑year capital receipts that are not expected next year and to planned spend‑down for ongoing literacy (READ/REACT) training.
On expenditures, the budget includes contract placeholders for the district—mployee groups (unit support, support services and principals), higher substitute teacher costs driven by extended long‑term assignments, and a reduction of about 6.5 certified FTEs compared with earlier projections. Parker also described fund‑by‑fund expectations: the food service fund is projected to roughly break even after identified equipment replacements; community education anticipates a modest deficit tied to inflation and rate changes; and the building construction fund will show large outlays tied to the Riverview HVAC project.
Superintendent Dr. Michael Rivard thanked Parker and staff for preparing a balanced preliminary plan in a volatile legislative year: “we are very fortunate to have Joe on his work and manage the budget of the Sartell‑St. Stephen Community School District,” Rivard said.
The preliminary budget will return to the board for final adoption following any state updates and the usual public review period.
The board recorded the motion to approve the preliminary 2025‑26 budget (motion by Matt Morley; second by Chelsea Phelan) and carried the motion by voice vote.
