Owatonna board approves amended 2025–26 budget, shifts committed funds into general fund

The Owatonna Public School District board on May 26 approved an amended 2025–26 budget that reflects $84,200,000 in general fund revenues and $85,700,000 in projected expenditures, including recently settled labor contracts.

At a presentation to the board, Sarah Brandt said the revenue total “does include a pretty sizable increase in our special education state aid funding of approximately $3,000,000” and noted compensatory revenue increases tied to updated state hold‑harmless calculations. Brandt said projected expenditures incorporate the full contract settlement package, and that the changes produce “a net decrease in our general fund balance of about $1,500,000 to end the year at projected $13,600,000.”

Superintendent Tamara Ciampa and finance leaders told the board they see the district’s unassigned fund balance at about 11.37% of expenses—an increase from preliminary projections—and that the district is “overall very healthy,” even as it plans for a near‑term drop in some fund balances. Ciampa also flagged an expected roughly $700,000 reduction in future compensatory funding tied to changes in application and direct certification processes, saying compensatory funding “was adjusted, about $700,000” and that the district will plan deliberately for that change.

In a related bookkeeping action, the board approved a resolution to decommit nearly $300,000 that had been previously set aside for the Career Pathways program and instead fund that program from the general fund so the program continues without change. Administration described the move as a reclassification of committed funds rather than a programmatic cut.

Vote and next steps The board moved and seconded the amended budget motion; the clerk read the roll and recorded unanimous approval. The board also approved the decommitment resolution by recorded vote. Administration said the district will present the 2026–27 proposed budget at the next monthly meeting and continue monitoring compensatory revenue and health insurance fund performance.

Budget documents and the full amended budget book were reviewed by the finance committee prior to the board meeting; the superintendent said all labor contracts were settled as of May 11 and those costs are included in the amended figures.