Bemidji school board adopts preliminary FY26 budget that projects an operational deficit

The Bemidji Public School District school board on June 16 adopted a preliminary fiscal‑year 2026 operating budget that projects a gap between revenues and expenses and retains an estimated fund balance above the board’s 10% policy minimum.

Ashley Eastridge, who presented the district’s 29‑page budget book, told the board the general fund beginning balance is projected to be about $15.4 million, with total revenues of roughly $77.7 million and expenses near $79.8 million, producing a projected overall deficit of about $2.1 million. Excluding restricted funds, Eastridge said operational revenues are estimated at approximately $65.3 million against $66.2 million in operational expenses, yielding an operational shortfall of about $1.9 million and an estimated ending operational fund balance near $8.4 million, or 12.7%.

Eastridge said the preliminary plan relies on several assumptions including modest increases to general‑education formula aid, a projected enrollment decrease of about 0.99%, an estimated 3% inflation factor on non‑payroll expenditures, and planned spending for curriculum renewal, transportation fleet and technology. The document will be posted publicly on the district website, Eastridge said, and the budget may be revised after state legislative action and once actual fiscal‑year‑25 figures are finalized.

The superintendent’s report highlighted legislative changes that will affect future costs: the district was told special‑education transportation reimbursement will drop from 100% to 95% in FY26 (costing roughly $86,000 to the district) and to 90% in FY27, which will shift additional transportation costs to the district’s general fund.

Board members approved the preliminary budget by voice vote after Eastridge’s presentation. Eastridge and the board emphasized the plan is preliminary and subject to change when enrollment figures and legislative outcomes are final.