Brookings School District previews nearly $61 million preliminary budget; flags special-education costs, insurance increases

Stacy Van Beek, Business Financial Director of Financial Services for Brookings School District 05-1, presented a preliminary 2025–26 budget to the school board, saying, “Numbers are still fluid at this point.” The district’s all-funds budget as presented is “almost $61,000,000,” with a general fund budget just under $29,700,000.

The presentation emphasized several drivers that could change the final numbers before adoption. Van Beek said the district does not yet have all Title grant amounts because the state is still setting some allocations after taking over certain functions from the federal Department of Education. She also noted enrollment is being treated as steady for budgeting purposes but could change, and employee benefit selections (single vs. family coverage) are a key variable: “If they take single health and dental, it’s about $6,900 a year. And if they take family, it’s almost $20,000 a year.”

Van Beek told the board that, compared with last year’s budget, the district’s total is lower primarily because Fund 41 (capital projects) will not include a large building project this year. “Last year, we were at almost $75,000,000, but we did have fund 41 for capital projects, which was about $12,500,000, which will not happen since we don’t have a building project going on,” she said.

Nut graf: The preliminary figures show the district balancing rising personnel and benefit costs with lower capital spending, while special-education funding remains the largest near-term uncertainty. District leaders said they plan final adoption in July or August once state aid and grant figures are finalized.

Key budget points

- All funds (preliminary): nearly $61 million. - General fund (preliminary): approximately $29.7 million, roughly half of the all-funds total. - State aid: Van Beek said the district received a 1.25% state-aid increase, putting state aid per student at just under $7,500 in the presented numbers. - Enrollment: The district recorded about 70 more students this year than the prior year; budget assumptions currently hold enrollment steady for planning. - Capital outlay: preliminary capital-outlay budget is just under $7.3 million. Van Beek said the district plans to defer many purchases this year to build fund balance for needed improvements at the high school and elsewhere: “We’re not gonna buy stuff. We need to save.” - Certificates and bond planning: bond redemption funds were discussed; Fund 31 (Dakota Prairie) budgeted just over $1.1 million, Fund 32 (Camelot) about $500,000 (two years away from completion), and Fund 33 (Hillcrest) about $1.9 million.

Special education and the extraordinary-cost fund

Special-education funding emerged as the largest near-term risk. Van Beek said the district applied for $1,030,000 in extraordinary-cost state funds and received about $980,000, leaving a roughly $50,000 gap that would have to be covered by a transfer from the general fund if no other revenues arrive. She said the district may need to apply for another $1 million in extraordinary-cost funds next year or otherwise transfer from the general fund.

Van Beek explained the mechanics: the state apportions a separate pot of special-education aid by disability “levels,” and the district was prioritized because it documented “high cost students” rather than a “high cost program.” She warned that timing complicates cash flow because some vendor bills for June services arrive after state distributions are made.

Board members questioned the distribution of levels and whether kindergarten and senior counts offset; Van Beek said kindergarten intake was “pretty close” to seniors leaving but cautioned late screeners and late enrollments remain a factor.

Insurance, levies and other revenues

Van Beek said the district factored an 8% health insurance increase and a 4% dental insurance increase into the draft numbers. She also noted that local levies went down from the prior year and that the resulting lower local levy increases state aid to make up some difference.

Capital rebates and contingencies

Van Beek said the district is pursuing energy rebates (I. Bailey Energy was mentioned) that could return funds to the capital-outlay program; she estimated the rebate could range from about $50,000 to $500,000 but said timing and final amounts were uncertain.

Food service, enterprise and self-insurance

Van Beek reported food-service costs are rising (salaries, food costs) but that the food-service fund retains a comfortable fund balance. She said the district received more than $5,000 in donations from a community fundraiser that the food-service program used to reduce unpaid meal balances. The self-insurance fund reflects the same 8%/4% increase in health/dental costs.

Next steps and timeline

Van Beek said the board will see a revised draft for final adoption at either the July meeting or the August meeting, depending on when state grant figures and final employee selections are confirmed. “We will reevaluate constantly and then present this for final adoption, whether it be the July meeting or the August meeting,” she said.

Speakers

- Stacy Van Beek, Business Financial Director of Financial Services (presenter). - Dr. Schultz, Superintendent (joined some higher-level remarks and context about state developments). - Board members asking questions included Wes (board member), Teresa (board president) and Deb/“Deborah I” (board member); some questions were general and not tied to a recorded roll-call vote.

Authorities

- state law (unspecified) — referenced by staff when describing statutory timelines and policy changes affecting budget and policy items. - Department of Education — referenced in relation to state aid and grant administration. - extraordinary-cost fund (state-administered special-education aid) — referenced by staff as the source of supplemental special-education funding.

Clarifying details

- Preliminary all-funds total: nearly $61,000,000 (as stated by Stacy Van Beek). - Preliminary general fund: about $29,700,000. - Special-education extraordinary-cost application: $1,030,000 requested; $980,000 received (approx. $50,000 short). - Special-education fund balance: approximately $100,000 (district indicated concern about dipping the balance). - Capital-outlay preliminary budget: just under $7,300,000. - Food-service donations mentioned: a fundraising donation over $5,000 plus smaller donations; total unpaid-meal donations not precisely specified.

Proper names

- Brookings School District 05-1 (school district) - I. Bailey Energy (rebate program referenced) - Department of Education (state/federal context)

Community relevance

- Geographies: Brookings School District (local) - Impact groups: students receiving special-education services, district employees, taxpayers (levies/user impacts), families using food service.

Meeting context

- Engagement level: the budget presentation drew multiple questions from board members and prompted follow-up items; staff said numbers remain fluid. - Implementation risk: medium — several items depend on state grant determinations, rebate timing, and employee benefit elections. - History: district noted prior-year capital transfers related to an elementary-school project that are not included this year.

Searchable tags

["budget","special education","levy","insurance","capital outlay","Brookings School District","state aid"]

Provenance

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