South Washington County Schools — Transcript

Thursday, July 16, 2026

School District Budget Adjustment Process

Superintendent's Report and District Updates

Votes (2)

Financial Updates and Budget Adjustment Process

No action taken, informational report.

Chris Blackburn, Director of Business Services, provided a detailed report on the district's financial challenges, including declining enrollment and rising operational costs, leading to an anticipated $13 million general fund deficit for the 27-28 school year. The district is at risk of falling below its fund balance policy by FY27 and facing statutory operating debt by FY29. A new program-based budgeting model is being used, allocating reduction targets to specific program areas. Staff feedback is being gathered through a survey, and steering committees will develop initial recommendations for board approval in November.

Superintendent's Report

No action taken, informational report.

Superintendent Julie Nielsen shared updates on district activities, including attending a regional meeting with mayors and superintendents to discuss common challenges like e-bikes in schools. She assured the board that despite necessary budget adjustments, the district is proactively managing its finances from a relatively strong position compared to other districts, with a $57 million fund balance. Updates were also provided on summer targeted services, extended school year programs, and the introduction of Brad Rob as the new principal at Cottage Grove Elementary School.

Notable Quotes (4)

At the current rate of spending the district will be below fund balance policy by FY27. So that's the 26 27 this upcoming school year and that we also as we forecast out are looking at statutory operating debt at the close of fiscal year 29 school year.

Chris Blackburn, Director of Business Services [3:50]
Financial Updates and Budget Adjustment Process

Rather than do a three and a half across the board, we chose instead to do a program-based budget model this year. And it's a strategy where budget reductions, we took the overall percentage like our large budget and then distribute across the programs relative to that total.

Chris Blackburn, Director of Business Services [8:40]
Financial Updates and Budget Adjustment Process

I think when we look at what we see showing up, there are always similar patterns to what comes up um when we talk about budget adjustments, even from the previous time we did budget adjustments. So I think for the board to know that and I will say that many of um the people sitting in the back row including myself who are overseeing the budget areas we've been spending a lot of time with Chris and basically going through every line item within the program of district and many times people think of district as just the district people and leaders.

Julie Nielsen, Superintendent [21:26]
Financial Updates and Budget Adjustment Process

while we're making some significant adjustments, when you take a look at where we're at as a district with $57 million in our fund balance, we're really on the front side of this. And so I'm thankful and grateful to our finance team. Um, we're on top of it. It's not easy, but as Chris shared, there are many, many other school districts in the same situation.

Julie Nielsen, Superintendent [25:52]
Superintendent's Report

Ordinances & Resolutions (5)

Fund Balance PolicyOther

District policy setting an unrestricted fund balance target of 16.6%.

Operating ReferendumOther

A voter-approved measure used for school resources, recently revoked and renewed.

Program Based Budget ModelPlan

New strategy for budget reductions, distributing cuts proportionally across program areas.

Budget Adjustment SurveyOther

Internal staff survey collecting feedback on potential cost savings and vital programs.

Next Five Years ProcessPlan

Long-term planning process for the district's financial future, to follow the current budget adjustments.

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South Washington County Schools - Newport Recorder