Cloquet district projects roughly $1.5 million shortfall for 2026–27, board plans budget committee work
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Summary
District finance staff presented a preliminary 2026–27 projection showing about a $1.5 million deficit driven by a compensatory funding shift, enrollment ADM declines, insurance increases and lost grants; the board scheduled a Committee of the Whole to refine options and discussed phased cuts and staff‑layoff procedures.
The Cloquet Public School District presented a preliminary budget outlook for fiscal year 2026–27 that outlines a possible $1.5 million shortfall driven by several converging factors.
Candace (finance/business presenter, speaker 4) said a shift by the state toward direct certification for compensatory funding could reduce district compensatory revenue by roughly $450,000. The district also projects a net loss of about 65 adjusted daily membership (ADM) students compared with the adopted budget, a decline the presenters estimated at roughly $650,000 (about $10,000 per ADM). Other pressure points include a projected 20% rise in insurance costs (about $255,000) and the end/loss of several grants (roughly $287,000 in lost grant revenue), partially offset by an estimated $175,000 increase in special-education revenue tied to prior-year expenditures.
Superintendent (staff member, speaker 1) and the finance presenter emphasized the totals are preliminary and subject to legislative or enrollment changes. "Long story short," the superintendent said, "we're looking at about a $1,500,000 deficit for 26–27," and that the district should treat the figure as a planning worst-case until final data arrives.
Board members discussed options to phase cuts, prepare alternate scenarios (a larger cut plan and a smaller, phased plan), and provide advance notice to staff in keeping with statutory procedures for unrequested leaves of absence (ULAs) and tenure rules. The superintendent reminded the board that staff procedural rights and the timing of notices affect the ability to implement layoffs before fiscal-year deadlines.
To refine planning, the board scheduled a Committee of the Whole budget session for April 23 (08:30–noon) to review a comprehensive plan that could be phased if needed; administration will return more detailed scenarios showing prioritized reductions and contingencies. The board asked administration to bring building-level administrators to future committee meetings so members can ask detailed questions about implications for programs and staffing.
The presenters recommended preparing both worst-case cuts and a phased option so the board can tune its level of risk tolerance depending on legislative outcomes and final February–April enrollment numbers.