South Washington County Schools — Transcript
Thursday, August 6, 2026
District Financial Health and Enrollment Trends
Review of Proposed Policy Changes, Including New Artificial Intelligence Policy
Operational Updates and Community Engagement Initiatives
Votes (2)
Financial Update
Chris Blackburn, Director of Business Services, presented a detailed financial report, highlighting enrollment trends, funding mechanisms (Average Daily Membership, Adjusted Pupil Units), and their direct impact on district revenues. The report noted a current enrollment 234 students ahead of budget for 26-27 but projected a long-term decline, particularly in kindergarten, influencing revenue shortfalls. The district faces an anticipated deficit of over $8 million for the 26-27 school year and a projected unassigned fund balance below policy levels. The presentation also clarified how state aid (43% basic formula, 72% overall state aid) and local levies contribute to revenue, and the challenge of increasing expenditures outpacing state funding increases. Next steps involve continuous enrollment monitoring, audit processes, levy approvals, and budget revisions.
First Reading of Proposed Policy Changes
Superintendent Julie Nielsson presented seven policies for their initial reading. Six existing policies (515, 516, 516.5, 519, 520, 530) received proposed grammatical and legal updates, with Policy 516.5 remaining unchanged. The significant addition was a new 'Responsible Use of Artificial Intelligence' policy, recommended by the MSBA. This policy aims to establish guidelines for staff and students using AI tools as the new school year commences. Further details on the implementation of the AI policy are expected to be presented in October, and the board expressed openness to future revisions.
Notable Quotes (4)
What we also know is that we always like to start the year with a positive that we're ahead of budget um because we also recognize that during the year that that enrollment will decline through attrition students making choices for u postsecary enrollment particularly and so we always try to um start out ahead because we know that just through the year that average daily membership um and that APU decline over time and so again we always it's a positive number but we always are I'll say cautiously optimistic always this time of
Each student in South Washington County Schools generates about $11,879 in state aids and levy dollars. This includes operating levy. Um, it also includes restricted funds such as operating capital, basic skills, um, which is includes English learner and compensatory dollars as well. We always talk about 84 students equaling $1 million in revenue and that's continues to hold true right now.
And I would just add, Elizabeth, the other thing that we want to be thoughtful about is having to do budget adjustments two years in a row. And you know, just what that does to the culture and climate climate of a district versus if we're able to take a big chunk now and then work on some of those five-year plings, whether that's an operating levy, capital levy, um, so that we can balance the system out a little bit.
And the real goal of getting this policy in place is to make sure that as the school year starts, we have some regulations in place as staff students utilize AI.
Ordinances & Resolutions (8)
Protection and privacy of pupil records, proposed grammatical and legal updates.
Student medication and telehealth, proposed legal updates and organizational changes.
Overdose medication, no proposed changes.
Interviews of students by outside agencies, proposed grammatical and legal updates.
Student surveys, proposed minor updates.
Immunization requirements, proposed grammatical and legal updates.
New policy outlining regulations for staff and student utilization of AI, recommended by MSBA.
District's long-term strategic plan, promoted through a new website and community engagement.