Prior Lake-Savage Area Schools leaders are monitoring some key figures that help forecast the district’s future budget.

During the March 10 PLSAS school board meeting, Executive Director of Business Services Tammy Fredrickson discussed the next year’s kindergarten enrollment shortfall, as well as current and forecasted revenue and expenses.

The number of kindergarteners enrolled for the 2025-2026 school year is currently 520 students, 40 fewer than the district’s projection. Since kindergarten enrollment is a bellwether for the district’s future size and revenue, these numbers are closely monitored.

Board member Jessica Mason asked Fredrickson how they came to the 560 projected number. Fredrickson explained that the number is based on a linear projection with a 3-year weighted average, but the business office is waiting for more solid enrollment numbers before it updates the budget. The final vote for the 2025-2026 budget will be in June.

Finding savings

Fredrickson also shared a number of reports that showed the district’s revenue, expenditures and cash flow. One forecasting report showed a $1.43 million deficit in the fund balance. She said much of this is due to salary expenditures from last year that won’t be part of this year’s costs. That will reduce the deficit by over $1 million.

She also pointed out that the business office goes through monthly analysis to see where they can save money. For example, to save transportation costs, the activities buses now only provide travel in one direction instead of round trip. They’ve also halted all the spending for non-salary supplies. The business office will also be sending out requests for proposals for transportation contracts for next year.

“While this analysis will show that we have a negative fund balance at the end of the year,” Fredrickson said, “we are anticipating and are very hopeful that that will not be the case because we have taken measures to negate that for the rest of the year.”