Members of the Prior Lake/Savage Area School Board at its Dec. 9 meeting discussed significant budget reduction options for the next two school years that include staff cuts and elimination of some programs.
Superintendent Dr. Michael Thomas said much of the information being presented that night was outlined as possibilities prior to the Nov. 5 levy referendum vote which failed by a margin of 55.6 percent to 44.4 percent. Voters were asked to revoke the district’s existing levy of $623.97 per student and replace it with a new levy of $1,803 per pupil with an inflationary factor.
As a result of the levy not passing, “we’re facing a very different financial reality,” Thomas said. “Our community has spoken and we respect that decision and we are going to move forward appropriately.”
Since the 2019-20 school year, the district has used approximately $5 million from its fund balance to maintain a balanced budget. To date, in the 2024-25 year, the district already trimmed the budget by $3.2 million through spending cuts, with nearly $958,000 withdrawn from the fund balance.
Budget reductions previously approved by the board for the current school year include $225,701 coming from the administration budget and nearly $726,000 removed from the instructional support budget. Staffing reductions approved earlier by the board came to $2.145 million, of which more than $1.22 million was attributed to 12 full-time equivalent staff positions being eliminated at the elementary school level. Other reductions previously approved include 3.6 FTEs for kindergarten, two FTEs from the secondary level, two custodial positions, the coordinator position for the Minnesota Center for Advanced Professional Studies (MNCAPS), and a middle school principal.
Staffing model changes proposed for the 2025-26 school year prompted by far the most discussion between board members and district administrative staff. Larger class sizes are projected at all grade levels due to FTE reductions.
At the elementary level, class sizes are expected to increase by two pupils per class due to the elimination of six certified and four non-certified staff members. Three teaching positions are proposed to be eliminated in middle school grades along with a reduction in the Spanish Immersion offering. Larger class sizes are also predicted within Prior Lake High School, while reductions in several specialized elective programs could materialize. In total, the proposed staff-related cuts total more than $2.26 million of the district’s $4 to $5 million goal to reduce its budget in the next school year.
Additional major cost savings could come from reductions to the special education budget that exceed $425,000. Eliminating Laker Online and the third-grade Sage Academy program that cumulatively total close to $400,000 will be considered. Cutting the technology budget, professional staff development programs, and adjusting the school calendar were discussed. The district will also consider increasing facility-use fees.
Additional cuts could include: field trips, early release days, band lessons, transportation to activities, external consultant contracts and district-wide transportation.
Thomas said the impact of closing the swimming pool at Twin Oaks Middle School will be reviewed. The district is facing a sizable investment in refurbishing the pool at a cost of more than $1 million, if it is to remain open. The pool is used for swimming lessons and other sporting events. While closing it temporarily would mean a $75,000 savings annually to the district, it would also result in a loss of revenue to the district along with use by the community, according to Thomas.
Proposed reductions that could be considered in the 2026-27 school year include closing one elementary school, which requires notification to the Minnesota Department of Education. Closing or repurposing of the District Services Center and moving staff operations to a local school was another major change proposed in the presentation.
Thomas said the options being considered would be “very impactful,” adding that school officials are already being petitioned by many groups hoping to save specific programs. He noted the estimated student enrollment numbers are declining or flat at best, so the district will not benefit from additional state funding that is paid on a per-pupil basis. He added that while the final budget for the 2025-26 school year will be determined by the board in June, administrative staff will be doing frequent check-ins in the interim and is committed to learning the true impacts of the proposed cuts.
Board officials were originally scheduled to meet for a study session on Dec. 18, which would have provided additional time to consider the proposed budget plan for the 2025-26 school year. Throughout the presentation, board members expressed the most concern about the proposed staffing model changes. Thomas said there was a need for the board to move forward with a decision soon since class registrations at the secondary school level would begin in January and proposed cuts could impact specific elective offerings. The study session would have been the final opportunity for board members to get additional questions answered before registration enrollments would begin.
“I don’t know what amount of information is going to change the staff moving in this direction because we know it’s such a large sum of money,” said Amy Crosby, board member. “We have to get real…I don’t need more information.”
Other board members concurred with her assessment and opted to cancel the Dec. 18 meeting. District staff was directed to proceed with class registrations next month as planned, which will help build out the enrollment projections and estimated staffing needs for the 2025-26 school year.
The board will meet next on Monday, Jan. 13, for its annual organizational meeting that is scheduled to begin at 5:30 p.m., followed by the regular meeting at 6 p.m.