The Prior Lake-Savage Area Schools board voted unanimously Dec. 8 to have district administration move forward researching a new referendum or a one-time renewal of its current levy. 

District superintendent Dr. Michael Thomas presented three possible timelines for a public vote on a new referendum as well as a timeline for a renewal of the district’s 2017 tax levy, which is set to expire in 2028. The board could also opt for a one-time renewal of the levy to extend it one year.

The district’s general fund balance has fallen significantly each year since it reached more than $22 million in the 2021-2022 school year, according to a recent audit. That includes dropping $460,000 more than expected — requiring the district to revise its current budget — to $13.5 million in the 2024-2025 school year. 

The district pushed a levy of $1,803 per student in 2024 to replace the $623.97 per student in the existing levy. It failed, with 55.5% voting against.

Thomas laid out several scenarios for how a school levy election might operate. If the district opts for a levy May 12, 2026, special election, the district would incur the costs. If they opted for an Aug. 11, 2026, special election, the district would only pay a portion since that date coincides with the primary.

The district would not face any costs if the levy vote took place on Election Day.

Thomas will share the administration’s research on a possible new referendum or a renewal of the current levy during the Jan. 12 school board meeting. 

Revised budget

Lisa Rider, district executive director of business services, also laid out one scenario for how the district might revise its 2025-2026 budget. 

Rider said adding funds from the potential sale of the business office building would allow the district to move the unassigned fund balance from 7.3% of the district’s annual budget to 7.86%. This is still short of the board’s goal of 8%. 

Board director Lisa Atkinson said the district is set to receive about $3 million in special education aid. 

Rider said while the $3 million is coming in, it is not enough to cover all the district’s special education expenditures. 

Thomas said the district could not cut the $768,000 in expenses needed to balance the budget without cutting or reducing services. 

“Is it possible we can find $768,000? Yes, it’s possible. And that’s going to come with a cost of eliminated or significantly reduced services and support into the district,” Thomas said.

The board requested Rider provide more budget options for them to consider before the final revised budget vote in January. 

“A corrective action plan, in my opinion, is cutting expenses,” said board director Jessica Mason. “I realize that’s a very difficult discussion and that we don’t want to do that. But that’s the reality.”