Red Wing board approves revised budget; unassigned fund balance remains healthy

The Red Wing Public Schools board voted Jan. 27 to approve a revised budget after a presentation by district finance staff.

Presenter Chris (district finance staff) said enrollment — which has fallen roughly 3% over recent years (about 60–75 students) — is the single biggest driver of general fund revenue. For fiscal year 2026 the state39s basic formula allowance was cited in the presentation as $7,481 per pupil unit.

Chris reported the district ended fiscal year 2025 with an unassigned fund balance just under 21% and projects that balance to be just over 20% at the end of FY26. The presentation stressed that for a district this size an operating unassigned fund balance in the 15–25% range is reasonable and that fund balance is critical for cash flow.

The presentation showed roughly 68% of general fund spending is for instruction (about 38% general instruction and 21% special education) and about 63% of the budget goes to salaries and benefits. Chris said the district's general fund revenues are sensitive to state aid changes and that federal aid comprises a small share (presenter cited roughly 1.7% of the general fund).

The board approved the revised budget by roll-call vote after the presentation. The presenter noted key summary metrics in the revised budget: a projected increase in unassigned fund balance of about $300,000 and an overall general fund surplus of approximately $76,000.

The board also scheduled follow-up work including requests for multi-year projections; the presenter said a two-year forecast is reasonable but projections beyond that are increasingly uncertain because of changes in enrollment and state policy.