The Spring Grove School Board approved the proposed budget for 2026-27 during its regular meeting on Monday, June 15.
The meeting was called to order at 7 p.m. Board members in attendance included Ashley Olson, Myriah Klug, Kelly Rohland, Lisa Myhre, Rhan Flatin, and Stephanie Jaster.
District Accountant Tanya Elton and Superintendent Gina Morken reviewed the budget with the board in detail and answered numerous questions from board members.
When board member Rhan Flatin asked how the district could increase revenue, officials responded in unison: “Find some kids,” The comment led to a discussion about possible reasons for declining enrollment, including a lack of available daycare and housing in the community.
The 2026-27 proposed budget is based on a total of 354.2 Average Daily Memberships (ADM), compared to a total of 373.54 ADM last year. Morken said that the district has already made staffing adjustments and reduced expenses due to declining enrollment at the high school level. “We’ve adjusted how many teachers are in high school,” Morken said. “We feel like we’ve done that work, but it may not fully make up for the fact that we settled the contract this year, so all teachers are getting paid 2% more. Our utility bills are up, and our Postsecondary Enrollment Options (PSEO) bills are up. There’s a lot of other costs outside of just our classroom ratios.
“So, were kind of setting the stage. We’re okay, but as you can see, this budget reflects a change for us. We’re probably going to have to be looking for more cuts next year. That’s not what we like to think about. But we also have to keep the budget even.”
Elton explained that while the budget is technically balanced, the district continues to rely on fund balance reserves to make ends meet.
“The budget is even, but we already had a couple hundred thousand dollars in deficit spending, and we are deficit spending again,” Elton said. “So we’re dipping into our fund balance. We’re dipping into all of them.”
She noted that the Minnesota Legislature recently approved a measure in this last legislative session allowing schools to use operating capital funds to pay utility expenses, providing districts with additional flexibility, which is a plus.
Elton also reported that the district benefited from an increase in compensatory revenue funding, an additional source of state aid tied to student demographics and educational needs. Spring Grove is projected to receive approximately $35,000 more in compensatory revenue next year.
“We were kind of a winner this year,” Elton said. “Some schools are seeing reductions of approximately $100,000 in direct service funding.”
The board unanimously approved the nine-item consent agenda in a single motion. Items approved included:
•The meeting agenda;
•Minutes from the May 19 regular school board meeting;
•Treasurer’s report and bills
•Acceptance of 2026-27 donations;
•Approved the 2026-27 athletic coaching staff;
•The 2026-27 local literacy plan;
•2026-27 proposed fundraisers;
•An employment contract with Claire Bratland, first grade teacher;
•An employment contract with Emily Schultz, instrumental music teacher.
Reports
The board received reports from Facilities Director Rachel Udstuen, Superintendent Gina Morken, Principal Matt Rosaaen, and HVED Representative Stephanie Jaster.
In other business, the board:
•Approved the 10-year long-term facilities maintenance plan;
•Approved the Spring Grove Cyber Security Agreement;
•Designated Superintendent Gina Morken as the school’s Official with Authority for the Minnesota Department of Education (MDE) External User Access. Morken explained that the designation will allow her to access the MDE’s website and assign user permissions;
•Took no action on setting the date for the fall board retreat.
Following adjournment at 8:21 p.m., members of the board toured the construction site with Udstuen.
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