Bemidji school board approves revised FY26 budget projecting $2.7 million deficit

Ashley Eastridge, the district’s director of business services, told the Bemidji Public School District school board that the revised fiscal year 2026 budget projects a $2,700,000 deficit, up from a preliminary estimate of $1,900,000.

Eastridge attributed most of the increase to rising payroll costs, saying payroll is expected to increase by about $1,100,000. She added that payroll costs from September through December averaged about $50,000 higher per month than anticipated and that, so far, only step-and-lane increases have been paid; the district’s estimates were revised to reflect the anticipated full cost of unsettled contracts. She also said state special-education revenue is estimated to increase by $486,000, based on updated entitlement reporting from MDE (Minnesota Department of Education).

"With that, I recommend approval of the revised fiscal year 26 budget," Eastridge told the board during her presentation.

Board members moved and seconded a motion to approve the revised budget. The board approved the motion by voice vote; the transcript records members saying "aye" and the chair stating the motion carries. The meeting did not record a roll-call tally for that vote in the transcript.

The revised budget will serve as the district’s planning baseline pending final audits and any further contract settlements. Eastridge framed the revision as an update based on audited prior-year data combined with year-to-date information and the district’s anticipated obligations.

Next steps noted in the meeting: the district will continue monthly payroll monitoring and incorporate final contract outcomes into future projections. No supplemental materials or contingency measures beyond the revised estimate were adopted during the meeting.