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Osseo board adopts 2025–26 budgets amid projected $22.7M operating deficit
Summary
The Osseo Area Schools board adopted the FY26 budgets for five funds; staff projected a 2.2% ($7.0M) increase in general fund revenues but an anticipated operating deficit of $22.7M and an ending fund balance projected at 25.4% ($88.3M).
Kelly Banoussa, the district’s director of business services, presented the proposed fiscal year 2026 budgets and the underlying long‑range financial planning framework the board used to set targets.
"Tonight, we bring forward for your consideration the fiscal year 20 26 proposed budget," Banoussa said, outlining revenue and expenditure changes. She told the board general fund revenues are budgeted to increase 2.2% (about $7,000,000), driven in part by a $7.3 million increase in general education aid and a projected increase of 345 adjusted students served. The presentation also showed proposed general fund expenditures increasing 9.1% over the FY25 revised budget and described a projected operating deficit of $22,700,000.
Banoussa walked the board through a five‑year forecast showing continued pressure on revenues versus expenditures and described planned operational reductions of $14,000,000 beginning in FY28 to preserve minimum policy balances. The proposed FY26 ending fund balance was projected at 25.4% of annual expenditures (about $88,300,000), which the presentation said is in compliance with the board’s 5% minimum policy despite being approximately $12.4 million lower than February estimates.
Board members thanked the finance team for their work, referenced prior work sessions and community support via referendums, and then voted to adopt the budgets. The motion passed after roll call (recorded in the transcript as the motion carrying).
