At their regular meeting on May 13, the Lanesboro School Board heard details of expected funding reductions for next year. Superintendent Matt Schultz informed the board that compensatory revenue is anticipated to be down $70,000. This revenue is based on students eligible to receive free and reduced lunches.
Post-COVID there are no longer forms to fill out to receive the lunches. Instead direct certification is used which means any families qualifying for other state services automatically qualify for free lunch. Applying at the county level rather than simply filling out a school form is not as comfortable for families to do. This results in lower numbers applying.
Another reduction in revenue was in library aid. Three years ago the mandatory minimum was $40,000. That minimum was cut in half. Additionally, the state now requires the hiring of a library specialist which adds to school expenses.
Schultz estimates there will be at least 10 fewer students next year. This will result in a $145,000 loss in state funding for the school. Total revenue loss will be around $235,000.
The state is looking to reduce education spending by $250 million next year. Since ADSIS is not IEP driven, Schultz predicts the state will plan to cut the $180 million state-wide program. Lanesboro would likely lose over $70,000 in funding as a result.
Another cut by the state could be the transportation reimbursement for student transportation to mental health appointments and the like. This $80 million statewide expense is paid for with SPED funds but is not IEP driven either and would be an easy cut. This would potentially have a $80,000 impact on Lanesboro’s budget.
Rising costs at the school for staffing, supplies, SPED, transportation and new requirements for the READ act all take a toll on the school’s budget.
The loss of funding for students choosing PSEO costs the district between $70,000 and $100,000 each year. Between 8 to 12 FTE Lanesboro students choose to attend PSEO. Before the credits cost the school $120 each; now the cost has increased to $250 per credit.
What the state provides per student has not kept up with inflation. Three is now a gap of $2,800 per student each year between the real costs and what the state provides.
According to Schultz, the administration is doing its best to keep costs down. Rather than purchasing a bus this year they chose to lease a bus for less. Supply purchases are being closely monitored, and technology spending is being closely examined.
Schultz has contacted Ehler’s, a school finance company, to see what a referendum would look like. He feels that a referendum that supplies $350,000 annually would be good to give a cushion and rebuild the falling fund balance.
A $350,000 operating referendum would bring an additional $850 per student. Such a referendum would increase property taxes on a $250,000 to $275,000 house by $360 to $390 per year. If the board were to decide to go with a referendum, it would be placed on this fall’s general election. In order to be on the election, the board would have to make a decision to do so no later than their July meeting.
The board decided to ask a representative from Ehler’s to attend the June board meeting so they could ask questions. One question the board had was how many properties were designated seasonal recreational in the district; these properties would not be subject to additional taxes if a referendum was passed.
Schultz informed the board that most schools in the area have an operating referendum. Historically, Lanesboro passed a five-year referendum in 1996 for $315 per student and a 10-year one in 2001.
Business Conducted
Regular business conducted by the board included:
•Accepting resignations from daycare director Ashley Gordon and custodian Jordan Lea;
•Approving the hiring of head girls basketball coach Mike Willford and daycare director Sherio Hotegaard;
•Approving a cooperative sports agreement with Mabel-Canton for boys and girls track and golf;
•Approving a revised budget for 2025-2026 with total revenue of $6.313 million and total expenses of $6.366 million;
•Approving a contract for an easement for construction vehicles to be parked on school property during the TH 250 reconstruction;
•Approving the semester test attendance rules for inclusion in the student handbook as well as the handbooks for both the elementary and secondary.
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