Little Falls board adopts 2025–26 budget as enrollment declines continue
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Summary
Board approved a $35.5 million general fund budget and projection that boosts unassigned fund balance to about 7.35%; budget built on enrollment estimate of 2,259 students and includes contingencies for contract negotiations.
The Little Falls School Board adopted the 2025–26 budget on June 30, approving a general fund budget of roughly $35.5 million and a multi-fund total of about $46.0 million in revenues for the year ahead.
During the presentation, district business staff noted enrollment remains the district’s single most important revenue driver. “Enrollment is our single most important factor in determining the district’s general fund revenues,” a staff presenter said, outlining a multi-year decline of roughly 5 percent since fiscal 2019 and an estimated annual revenue impact in the range of $800,000 to $1,200,000 depending on the year chosen for comparison.
The budget was built on a preliminary projection of 2,259 students for fiscal 2026; preliminary year-end reports showed about 2,314 students in fiscal 2025. The presentation named the basic formula allowance at $7,481 per K–6 pupil and $8,977 for secondary students, and said the formula allowance will generate roughly $18.9 million in state aid for fiscal 2026.
The district reported an unassigned fund balance of 4.22 percent at the end of fiscal 2024 and projected that it will end fiscal 2025 at about 6.33 percent. The adopted budget projects an increase in unassigned fund balance that would reach about 7.35 percent, below the district’s stated goal of 15 percent. District staff told the board they would revisit the budget at the December/January revised-budget cycle after contract settlements and updated enrollment data.
Board members asked about cash-flow needs and noted the district’s target of about two months of operating funds; staff said the district’s month-to-month cash position will be closely monitored. The presenter said 73.5 percent of the general fund budget is salaries and wages and that the district currently levies the maximum allowable local levy; increasing local revenue would require an operating referendum.
Board member Dan moved to adopt the budget and Sharon Baloo seconded. After brief additional discussion the motion passed; the board did not record individual roll-call votes for the budget adoption at the public meeting.
District staff flagged that the adopted all-funds budget shows total revenues of $46,010,244 and expenditures of $46,427,776 (an all-funds gap of roughly $417,532), while the general fund in the adopted budget shows a modest surplus projected for the year. Staff said they view the adopted budget as conservative and noted flexibility for changes depending on contract outcomes and final enrollment figures.
