Mahtomedi board hears midyear budget update as ESSER funds wind down

The Mahtomedi Public School District Board of Education on Jan. 26 received a midyear financial report showing the district’s finances generally tracking close to the approved fiscal‑year 2026 budget, while federal COVID relief (ESSER) funding has largely ended.

Finance staff presented a comparative view of 2024–25 actuals and the FY26 budget and explained that federal revenue fell from roughly $1.8 million to about $800,000 as ESSER disbursements concluded. The presenter said the district is collecting some special‑education federal funds faster this year (about 20.9% collected year‑to‑date versus about 8% at the same point last year) and that overall revenues are “right in line.”

On expenditures, staff said salary and wage spending is tracking at about 38.84% of budget compared with 39.75% last year; the district recently settled a teachers contract and retroactive pay will be issued this month, which is expected to increase that percentage. The presenter also noted higher tracking for unemployment benefits for part‑time and seasonal staff but said the state has provided funding to shore up that program and reimbursements are expected to follow.

Board members asked about the difference between total budgeted revenues and expenditures and were told the district plans to address the gap with fund balance (presenter cited a planned fund‑balance draw of roughly $1,000,001.30). Staff highlighted timing issues that affect property‑tax and donation lines and said donations remain strong in the current year.

The superintendent and finance staff emphasized that several timing and one‑time items — notably the end of ESSER funds and the teachers’ retro pay — are drivers of year‑over‑year changes and that the district will present a revised budget after updated referendum numbers are available.

The board received the midyear report; no formal vote on the budget was taken at the meeting.