South St. Paul School Board adopts 2025–26 budget, approves student handbook and other routine items

The South St. Paul School Board on June 23 adopted the district's fiscal 2025'26 budget and approved the 2025'26 Student Rights and Responsibilities Handbook, along with routine consent items and a July special work session.

The board voted 7'0to'00 to adopt the 2025'26 budget after a presentation from district finance director Raachov. Raachov told the board the adopted budget balances at about $52.4 million in revenue and $52.4 million in expenditures and leaves a small projected surplus. He said the state added an inflation index this year that increased the general-education formula by 2.74% and described continued revenue pressure from declining enrollment and the end of federal COVID relief funding.

Why it matters: the adopted budget funds day'to'day operations for the coming school year, including staff salaries and benefits (about 80% of general fund expenditures), transportation and food service. The budget also reflects the district's fund-balance policy (8% target) and contingent risks the district will monitor during the fall audit and the December'January revision process.

Raachov summarized several line items and assumptions: the budget is built from multiple funds (general fund, food service, community service, debt service), the state's formula increase was incorporated into projections, federal COVID relief is no longer available, and paid family leave (effective Jan. 1) adds a shared employer/employee cost the district expects to incur (Raachov estimated roughly $135,000 annually, about $65,000 for the partial 2026 fiscal year). He also described enrollment as the district's primary revenue driver and reiterated multi-year enrollment decline projections that will require continued monitoring.

Votes at a glance

- Fiscal 2025'26 adopted budget: motion carried 7'0'00. (Board vote: 7 yes, 0 no.) - Student Rights and Responsibilities Handbook (2025'26): motion carried 7'0'00. (Board vote: 7 yes, 0 no.) - Consent items (financial claims, bills payable, staffing): motion carried 5'0yes, 2'0no. - Motion to schedule a special work session Wednesday, July 30 at 5:00 p.m.: motion carried 7'0'00. - Motion to move to a closed session under Minnesota Statute 13D.03 (independent employee agreements): motion carried 7'0'00.

Document and vote details

Student handbook: The board approved the Student Rights and Responsibilities Handbook for 2025'26 without amendment. Amy Winter presented the handbook as an annual resource that lays out expectations, discipline procedures and family communication processes; she said most edits this year were cosmetic or updates required by legislation. The motion to adopt carried 7'0to'00.

Consent items: The board approved the consent agenda (financial claims, bills payable and staffing) on a 5'0to'02 vote. Two directors voted no; one said the no vote was "for the reasons discussed in the work session." No roll-call names for the two no votes were given on the public transcript.

Next steps and oversight: Raachov told the board the district will continue to monitor audited financials over the summer and return with a revised budget in the winter once audit results are final. He noted that some line items and UFARS coding are subject to change through the audit process and that the district's reserve level currently meets the 8% policy target (approximately $4.2 million as presented).

Board members and finance staff thanked community advocates and legislators for work related to compensatory funding; Superintendent Dr. Zambrino and trustees credited recent advocacy with preserving and increasing compensatory aid that the district had feared losing earlier in the legislative session.

Ending: The board ended its regular business and moved to a closed session under Minnesota Statute 13D.03 to discuss independent employee agreements. The public meeting adjourned and the board continued executive business off the record.