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ISD622 board approves FY2026 budget with $7 million in reductions
Summary
The North St. Paul-Maplewood Oakdale ISD622 school board on June 25 approved a FY2026 budget that closes a projected gap with targeted reductions of just over $7 million while using fund balance to maintain board reserves.
The School Board of Independent School District No. 622 approved its proposed fiscal year 2026 budget on June 25 after a presentation from district staff outlining revenues, expenditures and planned reductions.
Director Anderson presented the proposed budget, saying the district projects total general fund revenues of about $196,300,000 and total expenditures before reductions of about $206,300,000. The board-approved plan includes targeted budget reductions of just over $7,000,000 and reduces projected general fund expenditures to about $199,300,000, with the remaining difference to be covered by a fund balance contribution that keeps the district within its unassigned fund-balance target of 8–10%.
The budget presentation noted that enrollment is the primary driver of revenue. Director Anderson said, “we are projecting a slight increase in our enrollment,” and reported the district’s average daily membership (ADM) at 10,399 and adjusted pupil units at 11,389. The board was told the state basic formula allowance is expected to increase 2.74% and that the district expects reductions of roughly $154,000 in compensatory revenue and about $660,000 in Title I revenue.
Staff walked the board through the district’s major funds:
- General fund (Fund 1): roughly 70% of the budget; salaries and benefits account for just under 80% of general fund spending.
- Nutrition services (Fund 2): projected revenues about $9,800,000 and expenditures about $9,500,000, producing an estimated fund-balance increase of $285,000. Director Anderson attributed this to higher breakfast and lunch participation, but higher food and labor costs.
- Community education (Fund 4): projected revenues just under $13,000,000 and expenditures about $12,800,000, producing an estimated $151,000 increase in that fund’s balance.
- Construction (Fund 6): modeled revenue of about $1,500,000 and planned expenditures near $15,000,000 for continuing projects; staff said the district expects to sell bonds in coming months and will return with details from financial advisers (Ehlers).
- Debt service (Fund 7): projected revenue and expenditures of about $27,300,000, aligned with the Pay 2025 levy approved in December 2024.
- Self-insured medical (Fund 20) and dental (Fund 21): medical projected at about $25,000,000 (balanced) and dental just over $2,200,000 (balanced), using rates the board approved earlier in the spring.
- OPEB trust and OPEB debt (Funds 45 and 47): Trust and debt figures were presented (approximate annual totals of $1,400,000 and just under $2,000,000, respectively) to cover post-employment benefits and debt service on OPEB bonds.
Board members pressed staff on fund restrictions and specific line items. When a board member asked whether the district could move an overage from nutrition services into the general fund, Director Anderson replied, “They all stay separate and they’re coded separately,” explaining that funds are restricted to their intended purposes. On a question about a Community Education line for Meals on Wheels, staff said the item remains on the district’s books for now and that a budget adjustment will be made next year once a formal transfer is complete.
Board members and staff described the multi-month budgeting process used to identify the $7,000,000 in reductions. Director Anderson explained the timeline: preliminary planning in summer, a proposed levy presented in September, and the formal budgeting process beginning in December once numbers were final, with detailed modeling and input from principals, cabinet and department leaders. As an example of an identified saving, board members noted a planned change to the middle-school schedule intended to align it more closely with high school scheduling; the district said that change resulted in significant savings while maintaining instructional goals.
A motion to approve the FY2026 proposed budgets as presented was moved by Anderson and seconded by Swar; the board approved the resolution by voice vote.
The board was reminded that the proposed budget is subject to routine revisions during the year and that staff will return with detailed bond-sale information for continuing construction projects.
