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South St. Paul board adopts 2026–27 budget amid enrollment decline and $800K compensatory loss
Summary
Board adopted a $55 million 2026–27 budget after finance director Rod Schauf warned of declining enrollment, an approximate $800,000 loss in compensatory revenue, and an inflection point that may require fund‑balance use in future years.
The South St. Paul Public School District board unanimously approved the district’s 2026–27 budget on June 22 after a public presentation by Executive Director of Finance Rod Schauf detailing revenue assumptions, enrollment trends and risk scenarios.
Schauf told the board the district faces multiple headwinds: declining average daily membership (enrollment), a recent recalculation that reduced compensatory funding by about $800,000 this year, and continued inflationary pressure. He said the district’s general‑education formula allowance has not kept pace with CPI increases and that these trends have created an inflection point where revenue growth may not cover projected expenditures in later years.
For 2026–27, Schauf presented an adopted budget of about $55 million in expenditures, an increase of roughly 3.1 percent over prior figures driven mostly by labor costs. He said roughly 78% of expenditures are salary and benefits and that transportation, capital planning and supplies are other material cost centers. Schauf showed projections indicating the district’s fund balance could absorb near‑term shocks but warned of stress in fiscal years 2029–31 if current trends continue.
Board members praised the finance staff’s diligence and asked no substantive changes; the motion to adopt the budget passed 6‑0.
Schauf said the district will continue monthly and quarterly monitoring and may return with budget revisions in the coming months depending on enrollment and state funding developments.
