Caledonia Area Public School board members met Monday, April 14 at Caledonia Elementary School in room #162 to discuss the financial status of the district. All board members were present.
After welcoming attendees, Superintendent Craig Ihrke explained the purpose of the meeting was to understand the district’s financial situation and to plan for the future.
Ihrke started the meeting off with presenting a slide that showed the district’s nine year trend with student enrollment. In 2015, 660 students were enrolled. In 2021, 730 students were enrolled. Since 2020-2021 the district has lost 3% of its enrollment. A decrease will occur this year as a result of the graduating class of 2025 leaving the district, the current senior class is large. Ihrke commented, “I’m hoping this will kind of stable off.” Middle/High School Principal Nathan Boler added that the news mentioned 2025 having the largest graduating class in United States history.
Next, Ihrke and Business/Finance Manager Barb Meyer discussed the district’s loss of revenue. This year, the district lost $61,000 in Title funds. Ihrke mentioned Fund 4 operating in the red due to CAPS (Caledonia Area Public Schools) Care (daycare). Infants do not bring in a lot of money with daycare.
Ihrke continued on with discussing the operational impact then the loss of incentive aid. All elementary grades (K-5) will have two sections. Neighboring school districts are in a similar boat as CAPS. The current state inflationary index is 2.4%. The district no longer receives incentive aide in the amount of $495,000. The aid funds had been available for five years and was applied towards class size reduction, technology, and savings. “Anyone have any questions or comments?” questioned Ihrke. Meyer added that with the current legislation there are a lot of what ifs.
Ihrke briefly provided a recap on the pandemic funds and assured, “We’re in good financial shape”… however things are starting to get stressful. Ihrke commented that he worries about 4-5 years from now and does not see a windfall of money coming the district’s way. Superintendent Ihrke also assured that the district has a fund balance so the district is not in an emergency situation. There is uncertainty about what is going on with the tariffs.
Slides pertaining to the fund balance overview were presented. Ihrke stated the roofs in both the elementary and middle/high school buildings need to be redone in addition to heat pumps. Principal Boler chimed in stating the heat pumps in the middle/high school have been getting replaced as they go out. Boler commented that some rooms require larger pumps such as the Performing Arts Center.
Meyer stated there to be $384,000 in restricted/reserved funds for staff development and that funds kept increasing during COVID. There were also funds from Literacy and Incentive Aid. A question arose about staff development funding. Principal Boler answered that 2% is required to go towards staff development as mandated by state legislature.
Ihrke and Meyer discussed more specifically where certain funds went towards such as Fund 2 for food service. Elementary Principal John Wahlstrom questioned about food service funding. Meyer answered that the meals were paid for by the federal government initially. When the federal government stopped paying for free school meals, the state of Minnesota said they would do so. Unfortunately, the Summer Food Service Program will be going away this year, as the district did not qualify.
Discussion turned towards the debt service fund. As of 2029, $3.4 million will have been paid which had been the cost for the middle/high school. At that time, taxpayers’ taxes may go down but … the two buildings need roofs, plumbing, etc., some of which from the elementary school dates back to 1960. The “new” middle/high school is currently 24 years old, which is the life expectancy of roofs and heat pumps. Ihrke suggested in 2026, it would be a good idea to ask voters to do a referendum for x, y, and z building projects.
A slide was presented that showed a breakdown of the general fund revenue and where funds came from. Roughly 80% of funding came from state resources, 1.80% came from federal sources, 6.3% from other, and 12% came from local property taxes. The board and district staff then viewed general fund expenditures, general fund expenditures by program, and general fund revenues versus expenditures for a five-year trend.
The district made a few adjustments, such as eliminating 10 additional contract days, which saves roughly $8,000, and reduced an elementary section, which saves roughly $100,000. On April’s regular school board agenda, eliminate the secretary II position is listed, which saves roughly $38,000.
Long term strategies include balance the budget, explore new options, and preserve the district’s core mission, as stated by superintendent Ihrke. The district will do the best they can but advise to be prepared for uncomfortable situations. The district is sitting pretty good compared to other districts.
Board member Peterson brought up that half a million dollars is spent on technology which includes smartboards, iPads, Chromebooks, services, software, and Dependable Solutions. Peterson asked for a comparison in regards to technology when the district went one-to-one. Peterson said there to be no benefit if there is no increase in student achievement. Peterson acknowledged he would rather consider cutting that than actual staff.
“Was this beneficial?” asked Ihrke, “It’s a lot to take in.”
The board said, “Yes,” which brought the meeting to adjournment at 7:48 p.m.
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