Virtual academy drew far more students than expected, returning net revenue but stretching staff and systems

Matt Gross, the district presenter, told the ISD 318 school board the Grand Rapids Area Virtual Academy was launched to offer an in-district online option and to address declining enrollment. Gross said the academy recorded 137 average daily membership (ADM), 642 course enrollments, 465 course completions, a 72% completion rate and an average course grade around 73. He said many students remained connected to district activities: “45 kids between Grand Rapids and Bigfork high schools participated in high school activities.”

Gross said the program's scale exceeded year-one projections (the budget model had been based on 40 students) and that the academy generated over $1 million in revenue under conservative assumptions, with approximately $342,000 in direct costs for teaching, curriculum and platform. He described modeling that assumed 50% to 75% of students might have left without the option and said the district chose 75% as a conservative estimate to assess net impact. “From a financial perspective, we proved the concept that it was a good decision to move forward,” Gross said.

Board members pressed for more comparative outcome data. Tom Gustafson and others asked how virtual students' performance compares with face-to-face classes and how the district will measure success. Gross acknowledged the need for benchmarking: he said the administration will work to provide comparable data next year and that engagement (measured in minutes and hours online) was a key predictor of student success.

Trustees and presenters described operational challenges from rapid growth: assistant principals and counseling staff were stretched, onboarding materials needed expansion, and the program had a higher share of students with individual education plans (IEPs) than face-to-face classes. Gross said the district has already hired an online learning teacher and plans to build clearer onboarding, tracking and family communication systems. He described seeking supplemental-provider approval from the Minnesota Department of Education to serve part-time students from other districts and said counselors and teachers will have clearer roles to monitor progress.

The board discussed enrollment-control options. Gross said the district cannot refuse an in-district student who wants to enroll online but can limit open-enrollment or supplemental enrollments and can close a program or grade level if necessary. He recommended measured growth: “I'd like to set a goal of 250 ADM for 2026'27 and not overshoot capacity.”

The board asked about standardized testing opt-outs and benchmarking; presenters said they will pursue clearer benchmarking and discuss strategies with counselors. The presentation concluded with administration describing year-two themes: build systems, scale deliberately and improve engagement and completion measures.

The board did not take formal action other than questions and acknowledgement; the update was received as information.