Osseo board adopts $367.8M FY27 budgets, warns of planned deficit and multi-year adjustments

The Osseo Area Schools Board adopted the district's fiscal year 2027 budgets for all funds on June 23 after a presentation by Executive Director of Finance and Operations John Morstad and Director of Business Services Kelly Benusa.

"The proposed fiscal year 27 general fund budget includes revenue of 349,600,000, an increase of 22,300,000 or 6 8 6.8% to the fiscal year 26 revised budget," Benusa told the board during the presentation. She said expenditures are projected at $367,800,000, producing an anticipated operating deficit of $18,200,000 and a projected year-end fund balance of $87,200,000 (23.7% of annual expenditures). The presentation flagged that expenditures continue to outpace recurring revenues and described a planned $16,000,000 in operational adjustments phased in from FY28 through FY31.

In discussion, board members thanked finance staff for transparency and noted the numbers were reviewed at prior work sessions. Acting Chair Thomas Brooks and board members emphasized the desire to invest in students and staff while acknowledging the need for future prioritization. Following discussion the board approved the budget by roll-call vote, 6-0.

The budget packet breaks the recommended budgets into five funds — general, food and nutrition services, community service, capital and debt service — and includes specific investments such as a one-year $2,750,000 strategic investment in special education and a planned elimination of a $1,000,000 compensatory hold harmless in FY27. The board and administration said they will continue work sessions to refine operational adjustments and monitor long-term fund balance trends.