Board adopts revised FY26 budget; superintendent warns of enrollment losses and state funding cuts
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Summary
The board approved a revised FY26 budget showing a roughly $1.39 million net negative change driven by enrollment declines, capital spending and increased costs; Superintendent Miss Selvers reported 19 students moved out recently and flagged potential statewide cuts to compensatory and special education funding that could deepen next year’s shortfall.
The Stewartville Public School District board unanimously adopted a revised fiscal year 2026 budget after a presentation from finance staff showing a projected net negative change of approximately $1,386,000.
Finance presenter Mister Shorter said general fund revenues are just under $27 million while expenditures are just over $28 million under the revised plan. He reported an unassigned general fund beginning balance of $2,831,905 and a projected ending balance of $2,565,006.42 — a decrease of about $266,002.63 that reduces the unassigned fund‑balance percentage from roughly 10.5% to just over 9% under current projections.
Key drivers listed by Shorter included a downward revision in enrollment, salary and benefits increases (including changes as some positions transitioned from contracted services back to district employees), higher property insurance and elevated equipment and maintenance purchases (including vehicle replacements and Chromebook orders). Shorter also noted that restricted accounts such as LTFM (long‑term facilities maintenance) had sizable project spending this year, including football/track expenditures that contributed to restricted deficits.
The board approved the revised FY26 budget by unanimous vote (motion by Mister Geissner; second by Miss Cook). Finance staff said they will continue long‑range planning to rebuild restricted and unassigned fund balances.
In the superintendent’s update that followed, Miss Selvers reported that between January and February the district recorded 19 families (19 students) who moved out of the district; of those, 10 students had moved to online programs and one was a dropout. She said current enrollment is approximately 1,907 and that the district needs to plan for continued declines.
Miss Selvers warned of several state legislative and policy changes that could further reduce district revenue next year: compensatory revenue for the district is projected to fall from about $550,000 this year to roughly $450,000 next year (about a $100,000 reduction) because the state will stop counting paper applications and rely on direct certification via Medicaid/SNAP/TANF. She also flagged a commission recommendation to reduce or eliminate state access funding (about $265,000 for this district) and certain special education transportation reimbursements (about $60,000), which together would leave an additional $345,000 in unfunded costs if enacted.
Superintendent Selvers said district leaders will consider whether to maintain programs now funded by these streams or to discontinue them if the funding disappears; she also said the district will share contact information for legislators so the community can communicate the local impact. Board members asked staff to model levy scenarios and to continue refining budget alignment work ahead of the April timeline.
