Osseo Area Schools reports better‑than‑expected FY25 results but projects deficits ahead

Board members heard a preliminary financial report Sept. 23 showing the district closed fiscal year 2025 with revenues modestly ahead of budget but longer‑term challenges ahead. "Overall, our revenues were more than budget by 3,500,000 and had a positive 1.1% variance," Director of Business Services Kelly Benusa told the board, noting tax collections were $383,000 higher than budget and third‑party medical billings increased by $548,000.

Benusa said expenditures were largely contained: salaries ran about $1.3 million under budget, savings were driven by open positions and postponed training, and a combination of lower transportation costs and other efficiencies contributed to a $5.7 million favorable expenditure variance. She also said the district’s combined fund balances decreased from $410,000,000 to $365,000,000 as of June 30, 2025, primarily reflecting building construction spend‑down.

The staff presentation included a high‑level five‑year projection that shows expenditures beginning to outpace revenues in fiscal 2026. Benusa said the model includes operational reductions totaling $5,000,000 planned for fiscal years 2028–2030 and assumptions tied to enrollment changes, transportation contract impacts, and state aid adjustments. "We will continue to monitor the financial projection to maintain the board required minimum fund balance of 5% in the future," she said.

Board members thanked staff for conservative management and cost containment. Chair Tanya Prince noted the results will feed into the long‑range planning process and next steps, including the formal audit presentation in November and mid‑year budget updates in February.