Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Board reviews preliminary three-year budget as taxable valuations fall and building needs loom
Summary
Board members reviewed a preliminary budget showing declining taxable valuations, carryover pressure, projected insurance increases, and major facility repair needs tied to a potential referendum; staff modeled scenarios for per-pupil aid, tuition levies, and program-specific transfers (hot lunch, transportation).
The OAKES 41 School Board spent the bulk of its May 19 meeting reviewing a first draft of the district’s preliminary three-year budget, hearing staff projections that show declining taxable valuations, upward pressure on insurance and benefits, constrained carryover reserves and a long list of building repairs that could require a referendum.
Finance staff explained that taxable valuations for agricultural land in the district’s primary county are projected to fall (an 8% decline was cited for one county), and that the district modeled scenarios for the 2026–27 and 2027–28 budgets based on those valuation shifts. The presentation included estimates for property tax levies, per-pupil aid calculations from the Department of Public Instruction (DPI), and assumptions about federal and state grants such as Title I.
Staff said they plan conservatively for several cost drivers: a projected 15% annual increase in health insurance premiums for the latter two years of the forecast, flat wages in years two and three, and potential increases in transportation and hot-lunch program costs that could require general-fund transfers (staff estimated transfers this year in the tens of thousands). The draft assumes a carryover target that starts to fall below common benchmarks if current trends continue.
The tuition levy for Center for Distance Education (CDE) classes was discussed: state guidance now gives districts some discretion to decline payment when a district has a teacher available, potentially reducing the tuition levy burden. Staff reported an estimated tuition levy amount ($11,040) based on current enrollments and assumptions but noted this figure could change.
Board members asked for clarifications on enrollment projections (the presenters noted some worksheets used older ADM figures and will update projections), the composition of carryover and special reserves, and which building repairs are likely to be funded only via a successful referendum. Staff repeatedly warned the board that a successful referendum would shift major capital work to bond funds and sinking-fund accounting, but absent a referendum, general funds and limited special reserves would be strained.
No formal budget vote took place; staff characterized the worksheet as preliminary and asked the board to find errors and provide feedback before formal adoption later in the budget cycle. The board set its next meeting for June 16, when finalized June ballot results will also be available.
