Board approves revised FY25‑26 budget; unassigned fund balance restored above policy level

The Prior Lake‑Savage Area Schools Board of Education voted Jan. 12 to approve a revised FY25‑26 revenue and expenditure budget that staff said restores the district's unassigned fund balance above its 8% policy target. The motion to approve the revised budget passed on a roll‑call vote, 7–0.

Staff said the revised figures incorporate updated enrollment verification and the Minnesota Department of Education's November 30 revenue model, which together produced additional revenue estimates. "We are at 8.46% for unassigned fund balance," the presenter said, and later summarized the net change as "revenues in excess of expenditures by $646,006.00." The packet also identifies roughly $3.4 million in special‑education revenue and an additional $1,081,006.50 from grants and higher‑than‑anticipated receipts.

Why it matters: restoring the unassigned fund balance above the board's 8% policy reduces the likelihood of entering statutorily perilous operating status and gives the district breathing room while it plans longer‑term budget actions. Staff said some of the adjustments are timing‑sensitive (one‑time or recognition of revenue now available midyear) and that continuing pressures in special education and transportation remain.

The board also heard questions about a proposed fee to cover the cost of administering the ACT. The presenter said the district would charge roughly $58 (the slides and discussion alternately referenced $58 and $60) for on‑site administration and would provide waivers for students eligible for free or reduced‑price meals. "If a student were to go elsewhere to take the ACT, they would find that their test cost would be, in upwards of $70," staff said, arguing the $58 fee saves families money while preserving statutory access to a college‑readiness assessment.

Board members asked about forecast assumptions, where expense reductions were located and how consolidation plans would feed into future forecasts. Staff said the five‑year projections include a presumption of a $3,000,000 adjustment in FY27 tied to anticipated consolidations and other actions, while noting that some expenditures (special education, transportation) are expected to remain high.

The board approved the revised FY25‑26 budget on a roll call (directors recorded in the meeting minutes; motion passed 7–0). The district will continue to refine multi‑year projections and bring additional options and implementation details back to the board for follow‑up.