South Washington County Schools board members spent much of their June 11 workshop meeting reviewing the district's financial outlook and discussing a framework that will guide upcoming budget reduction decisions as officials prepare to address projected deficits in future years.
First though, the meeting began with reports from the district's student board representatives, who reflected on the end of the school year and their summer plans.
Woodbury High School graduate Matilda Samuel shared highlights from the school's June 7 commencement ceremony, noting that concerns about rain ultimately gave way to favorable weather and a double rainbow after the event. She also described the school's senior all-night party as a memorable celebration that included games, food and activities.
“It turned out well in my opinion,” she said. “The ceremony went well. We had a lot of speakers.”
Student representative Andrew Casteen meanwhile discussed the conclusion of concert band and jazz band seasons and preparations for the upcoming marching band season. He also announced plans for student representatives to introduce a student concern process next year to help elevate issues from students to district leadership and the school board.
Téa Alvarenga spoke about spending her summer participating in soccer and basketball while also volunteering at youth camps. She emphasized the importance of leadership and mentorship opportunities provided through athletics.
“Summer is the time when I transition from academics to sports,” she said.
Board members and district leaders recognized Samuel for her service during the school year. Superintendent Julie Nielsen praised the return of student representatives to the board table, saying their perspectives provided valuable insight into district decisions.
As for presentations June 11, Assistant Superintendent Kelly Jansen introduced the district's annual update on the Alternative Teacher Professional Pay System (ATPPS), a state-funded professional development initiative often referred to as Q Comp.
Jensen was followed by Patty Diamond, ATPPS specialist and former elementary teacher, who explained that South Washington County Schools has participated in the program for 18 years. The initiative is supported through a Minnesota Department of Education grant and focuses on professional development, educator goal setting, peer observations and teacher leadership opportunities.
Diamond said more than 90 percent of district educators participate in three additional professional development days funded through the grant. One component allows staff members to pursue individualized learning opportunities tailored to their roles.
"The beauty of the flex day is that it is professional development that's relevant to educator goal setting," Diamond said.
Teachers also establish student achievement and social-emotional learning goals while participating in peer observation and coaching opportunities.
The district's instructional coaches, mentors and equity teacher leaders play key roles in supporting educators. Diamond noted that instructional coaches help staff analyze student data, refine instructional practices and strengthen classroom outcomes.
As district leaders review the program, they are also examining long-term sustainability. Because ATPPS funding is based on student enrollment, future enrollment declines could affect available grant dollars.
District officials are beginning a comprehensive evaluation of the program and discussing contingency plans should state funding eventually be reduced or eliminated. Flat enrollment would mean flat funding, as enrollment drives the budget. Seeking to plan ahead, the board also reviewed a "guiding change" document that will serve as a framework for upcoming budget adjustments.
Nielsen said district administration is preparing to identify approximately $13 million in adjustments for the 2027-28 school year. The district will use a planning document to do this that establishes current realities, desired outcomes and "unacceptable means" or things that staff should avoid when developing recommendations.
"It outlines the current reality, the results we want to get to, as well as what we consider to be unacceptable means, anything that is sacred to us, anything that we don't want to give up," Nielsen said.
Several revisions were discussed, including clarifying district financial information and updating enrollment-related figures.
Board member Elizabeth Bockman Eckberg asked when families might begin seeing impacts from the process.
Nielsen said community feedback opportunities will occur once potential adjustment packages are developed. District officials are also considering special communications to residents this fall to explain the district's financial challenges and keep taxpayers informed.
While some budget reductions could affect programming or services in the near future, Nielsen indicated many larger decisions may emerge through the district's longer-range planning efforts.
The superintendent noted that district employees have already been surveyed regarding programs and services they view as essential.
Following Nielsen, Director of Business Services Kris Blackburn presented the district's preliminary budget for the 2026-27 fiscal year.
Blackburn reported that the district's budget contains more than 18,000 individual line items and requires hundreds of hours of preparation.
The preliminary budget projects approximately $359 million in revenue and $367 million in expenditures, resulting in an estimated deficit of about $8 million. The projected deficit is smaller than earlier estimates that approached $13 million.
Blackburn explained that enrollment continues to be the primary driver of district finances. Enrollment is projected to decline from roughly 19,200 students this year to about 18,700 next year.
"Enrollment drives the budget," Blackburn said.
State aid continues to provide the largest share of district revenue, accounting for roughly 72 percent of funding, while local property tax levies contribute about 25 percent. Special education is around 20 percent of the budget but does not receive adequate funding from outside sources.
Blackburn also highlighted a statewide constitutional amendment that voters will consider this fall. If approved, the measure would increase distributions from Minnesota's Permanent School Fund. District officials estimate South Washington County Schools could receive more than $1 million annually without increasing taxes.
The district's unassigned fund balance is projected to decline to approximately 13.8 percent under the proposed budget.
Looking ahead, Blackburn identified declining enrollment, transportation costs, contract negotiations, inflation, state leave requirements and possible future reductions in special education funding as factors that could further affect district finances.
Board members also received a first reading of several policies involving employee background checks, staff identification badges, employee-created materials and transportation.
Most policies contained no substantive changes, though transportation-related policies included legal and language updates.
In her closing remarks, Nielsen congratulated the district's graduating students and highlighted the successful completion of commencement ceremonies across the district's various educational programs.
She also noted that summer programming is underway, including credit recovery, extended school year services, targeted support programs and Kids Club activities. Meanwhile, construction projects throughout the district continue as part of what district officials refer to as the annual "summer slam" building season.
The board's next regular meeting is scheduled for June 25 at the District Service Center in Cottage Grove. The public is welcome and invited to attend.