Hinckley-Finlayson board adopts 2026–27 budget projecting 22.2% fund balance

The Hinckley-Finlayson School District board unanimously approved its 2026–27 annual budget after Superintendent Brian Masterson and finance staff laid out enrollment and revenue assumptions and proposed spending priorities.

Masterson told the board the budget was built on an assumed enrollment of 751 students, down from a budgeted 825 and an actual ~804 this year. Administration projected total district revenue of $16,944,297 and total expenditures of $18,980,272, producing a projected general fund balance of $3,610,143, roughly 22.2% of fund balance policy.

"We did build it off 751 kids," Masterson said during the presentation, noting kindergarten numbers often change in August and that special education revenue assumptions were set at $2.336 million based on state guidance. He added the district expects to underspend in some areas at year-end and has left a modest cushion rather than returning all projected underruns to fund balance.

The budget presentation detailed several adjustments and assumptions: a planned 3% raise for teachers (second year of their contract) and a 3% increase for support staff in the first year of their agreement; proposed reductions in some high-school social-studies and support positions to reflect enrollment trends; and a transport strategy expected to save approximately $250,000 if the district's transportation changes proceed as planned.

Finance staff reported that, as of May 31, the district had spent about 85% of the budget year and expected final results to be within administrative projections. Masterson said revenue tied to enrollment—state per-pupil aid and other federal funds—remains the primary driver of change in coming years.

The board voted to adopt the budget as presented by motion; the vote was recorded as 7–0 in favor.

What happens next: administrators will finalize fee schedules, substitute rates and other line items at future meetings and will revisit budget details if enrollment or state numbers change before the fiscal year begins.