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Stewartville board adopts preliminary FY26 budget, 10-year facility plan and capital outlay
Summary
On a 7-0 vote the Stewartville Public School District board adopted a preliminary budget for fiscal year 2026, approved a 10-year long-term facility maintenance plan and approved the district's capital outlay budget. Administrators said legislative cuts and unsettled state aid runs could force further spending alignments next year.
The Stewartville Public School District Board of Education on a unanimous vote adopted a preliminary budget for fiscal year 2026 and approved a 10-year long-term facility maintenance (LTFM) plan and the district's capital outlay spending plan.
Business manager Daniel Schroeder presented the budget and supporting documents, saying the district is projecting general fund revenues and expenditures that leave the district's unassigned fund balance close to the board's 8% policy threshold. Schroeder reported $23,630,000 in one set of fund projections with $24,000,185 in expenditures and about $419,000 in transfers, leaving an estimated fund balance of $2,370,002 (about 8.61%). He also summarized a district-wide general fund picture of "just under $26.5 million" in revenue and about $27.5 million in expenditures, a gap of roughly $1 million.
The board voted 7-0 to adopt the proposed budget after Schroeder's presentation. The motion to consider and approve the proposed budget for fiscal year 2026 was made by Mr. Lowman and seconded by Mr. Geist; the tally recorded seven ayes and zero nays.
Administrators warned the board that legislative action this spring and subsequent releases have reduced several targeted aids compared with earlier expectations. Superintendent Belinda Selfers and Schroeder outlined specific changes they said were driving reduced revenue: compensatory (basic skills) aid projected to fall by about $54,000; reductions in library aid of roughly $36,000 over two years (about $17,500 in year one and $18,100 in year two); and reductions in other student-support related aids totaling just over $80,000 across two years. The superintendent summarized the combined effect as approximately $155,000 less state revenue than earlier projections.
Schroeder noted the budget currently shows a net decrease (a deficit) in the unassigned fund balance of $135,291 for FY26. Board members expressed concern that the district's fund balance would fall close to the minimum 8% level set by district policy. The board was told that falling below that policy threshold would require the board to adopt additional alignments to return the district to policy compliance and could negatively affect the district's bond rating, increasing borrowing costs.
The board also voted, 7-0, to adopt its annual 10-year LTFM plan. Schroeder described how the LTFM levy calculation uses adjusted pupil units, average building age and a state formula; the district's calculated LTFM amount for the plan year was $831,288. The plan lists deferred maintenance and safety projects, notes that some roof work above $100,000 is now eligible under the LTFM levy change, and projects levy receipts and state aid over the 10-year window.
Separately, the board approved the district's capital outlay budget and the list of designated capital purchases. The operating capital package included technology allocations (about $110,000 total for instructional devices and 1:1 laptops), gym bleacher replacements (a $135,000 high-school project partially funded by a donation) and other equipment items; the itemized capital expenditures totaled $531,008.46 with lease revenue and other sources supporting the fund.
Board members and administration emphasized that FY26 remains subject to change if final state aid runs differ from current projections; several board members said administrators should monitor revenues and be prepared to recommend alignments next spring if necessary.
The board approved the proposed budget (motion by Mr. Lowman; second by Mr. Geist), the LTFM 10-year plan (motion by Mr. Ravenhorst; second by Mr. Geist) and the capital outlay budget (motion by Mr. Welch; second by Mr. Reaganhorst) by recorded voice votes of 7-0.
Documentation provided to the board includes detailed line-item pages, a summary of the most significant revenue and expenditure changes, and an LTFM project list.
Looking ahead, administrators told the board they will finalize audit-based numbers in August/September and continue refining revenue estimates when additional state guidance and detailed MDE (Minnesota Department of Education) runs are released.
No staff layoffs or specific program cuts were adopted as part of the FY26 preliminary budget vote; the board and administration noted additional alignments may be required in spring 2026 if revenues fall short of the current projections.
