Preliminary 2025–26 budget highlights special education, transportation and fund‑balance pressures

On June 4 the St. Cloud Public School District’s executive director of finance and business services, Amy Skelleroad, presented the district’s preliminary 2025–26 budget and highlighted pressures from special education funding timing, transportation costs and several fund balances.

Skelleroad said the budget reflects approximately $133,000,000 in state revenue, about 85% of total operating revenue. “This budget reflects revenues from the state of about a hundred and 33,000,000, which is about 85% of our total revenue,” she said.

She told the board the special education cross-subsidy has improved since the year the cross-subsidy aid began but is trending upward again because staffing additions precede funding and because the district budgeted special education transportation at a 95% proration included in the governor’s proposal. Skelleroad said the district has added both licensed and non‑licensed special education staff for next year and that funding from the state for those positions will lag.

Skelleroad reviewed the three components of the general fund—operating, transportation and operating capital—and said the revised 2024–25 budget shows about a $4,000,000 draw from assigned fund balances tied to previously approved one‑time projects (including McKinley additions and Apollo theater improvements). She said the district projects a roughly $325,000 decrease in overall fund balance in 2025–26 and noted city special assessments and the cost of a special election are part of that projection.

On transportation, Skelleroad said two charter schools are opting out of district transportation next year, which will reduce routes and the corresponding transportation state aid; the district is budgeting conservatively and estimates the general operating fund covers roughly $1,500,000 in transportation costs beyond transportation‑specific funding. She said routing is not final and the district may realize additional cost reductions once routing is complete.

Skelleroad also reviewed other funds: operating capital with a healthy reserve of more than $2,000,000 despite an expected phone system replacement; food service, which draws about 95% of revenue from federal sources under the federal community eligibility provision and currently shows a fund balance of about $2,800,000; and the health insurance fund, where reserves have been drawn down by higher claim costs.

She said the district expects bond proceeds tied to the recently passed referendum to close July 1 and that the 2025–26 budget will see related adjustments once amounts are finalized. Board members asked clarifying questions but made no formal changes during the work session; Skelleroad said rate and plan‑design recommendations for health insurance will come to the board in August after an RFP and LMC review.