Pipestone Area School District board approves 2027 budget despite projected $14.7 million general‑fund deficit

The Pipestone Area School District board unanimously approved the district's fiscal year 2027 budget after a presentation by the district's finance staff showing a projected general‑fund deficit of $14,678,573. The finance presenter told the board the estimate is based on preliminary figures and that audited and finalized numbers will not be available until Nov. 30.

The presenter said salaries, transportation and purchased specialist services account for roughly 82% of district expenditures and that revenue growth from the state (about 2.67% on the presented sheet) has not kept pace with rising costs. The finance staff projected a fund balance of about 24.39% under a conservative, worst‑case scenario; board policy calls for a fund‑balance range of 25%–34%.

Board members discussed levy strategies and the need for a finance subcommittee to examine options, including possible follow‑up on an operating referendum discussed previously with outside advisors. The presenter also outlined that other district funds vary: the food service fund projects a positive balance of about $1,105,000, while some community education subfunds show modest surpluses and deficits.

During the discussion, board members asked for additional detail on estimates and the presenter said they would reexamine figures before the January meeting and email any requested clarifications. A motion to approve the FY27 budget passed unanimously.

The board voted to adopt the budget and will receive updated figures after the November audit; the presenter said he would revisit assumptions in January if adjustments are needed.