Board hears enrollment dip, strong fund balance, and unquantified mandate costs; superintendent reports bargaining impasse
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Summary
Finance staff reported ADM at 3,036 (six below the revised budgeted 3,042), an unassigned fund balance of 17.8% despite roughly $2.1 million in deficit spending, and preliminary estimates of unfunded-mandate costs. The superintendent said negotiations with 'Grama' are at an impasse and mediation has been requested.
During the meeting Angie presented the district's financial report and enrollment update, saying the district's average daily membership (ADM) currently averages 3,036 compared with a revised budgeted ADM of 3,042. She told the board the district has not adopted budget revisions and that the unassigned fund balance goal (policy 714) is 9 to 12% of operating expenditures; the district's current unassigned fund balance calculates to 17.8%, which Angie emphasized is after about $2,100,000 in deficit spending.
Angie also walked the board through an attempt to quantify unfunded mandates. She identified paid family medical leave as the biggest near-term cost, reporting the district's share of the payroll tax is 0.44% and employees pay 0.44%. She estimated increased substitute costs and administrative time but described most figures as preliminary; a clustered list of items was shown with a working total near $817,000 for the items outlined (Angie characterized that as an estimate, not a finalized total). Angie said some costs, such as REED Act-related items and training, are administratively time-consuming but not yet fully quantified.
On labor negotiations the superintendent told the board the district met with "Grama" last week and appears to be at an impasse; the union has filed for mediation and a date was not yet set (staff estimated possibly early February). The board subsequently voted to convene a closed session under Minnesota Statute section 13D.03 to discuss labor negotiation strategy; the closed meeting was scheduled to begin at 7:25 p.m. in the middle school student center.
Board members asked clarifying questions about whether paid family medical leave can be used outside the school year and about eligibility for summer-term unemployment; Angie said staff can use paid family medical leave during summer breaks and that summer-term unemployment eligibility is determined by the state (DEED) and typically applies to paraeducators, not teachers. The superintendent said the district will begin its budgeting kickoff process in the coming weeks and will continue a series of budget conversations at future meetings.
The board approved the financial report by voice vote during the meeting.