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Board approves $850,000 Fund 46 transfer, buys replacement route bus amid state budget shifts
Summary
Trustees approved an $850,000 transfer into Fund 46 for capital improvements, authorized purchase of a $145,784 route bus, and discussed how the 2025–27 state budget (a $3.25 per‑pupil revenue limit increase with no state‑aid boost) may shift costs to property taxes while increasing special‑education reimbursement targets.
The River Falls Board of Education approved multiple finance actions after the finance and facilities committee reported that facility projects are on schedule and within budget.
The board approved a transfer of $850,000 into Fund 46 (the district’s long‑term capital improvement fund) to cover capital and maintenance projects that were budgeted but will be completed and paid across fiscal years. Finance staff explained Fund 46 requires funds to be held separately and used only for board‑approved capital projects; the transfer stems from year‑end accounting and a combination of carryover maintenance obligations and additional interest earnings.
The board also authorized the purchase of one route bus from Nelson’s Bus Service for $145,784 as part of the district’s vehicle replacement cycle. Trustees clarified that the bus is a replacement and that the fleet will not grow as a result of this single purchase; the motion passed with a recorded 7–0 tally.
Trustees and staff discussed state budget implications: the biennial budget includes a $3.25 per‑pupil revenue‑limit increase for 2025–26 and 2026–27 but did not increase state aid, meaning districts that take the revenue limit increase must raise more property tax levy locally. The board highlighted new special‑education reimbursement targets (a stated goal of 42% in year one and 45% in year two), noting historical actual reimbursements have been lower (about 30.6% last year) and that the new allocation mechanism is sum‑certain and therefore uncertain until reporting completes. Finance staff also noted open‑enrollment shifts, voucher reimbursement impacts (including an example $30,000 reduction tied to voucher students), and roughly $80,000 in federal Title funds currently on hold.
Board members expressed concern about shifting the burden of budget changes onto property taxpayers. Alan noted that state income‑tax reductions can produce local property tax pressures when state aid does not increase. Finance staff said districts must finalize levies in October and that further adjustments will follow as equalized value and student membership figures are clarified.
Implementation steps: finance staff will bring an updated capital improvements plan to the finance committee, provide details on Fund 46 use, and report final levy recommendations later in the budget cycle.
