The Prior Lake-Savage Area School Board board voted 4-3 to approve the proposed 2026-27 budget during its June 8 meeting.

The proposed 2026-27 budget shows combined revenue totaling $189,372,668 and expenses totaling $187,607,051. Lisa Rider, Executive Director of Business Services, presented the preliminary budget as well as the district’s five-year financial projections after updating data shared with the board in mid-May. Reductions totaling more than $4 million in staffing, class offerings, activities and services were included in the calculations for the coming year.

The projected unassigned fund balance for the coming school year would be above the minimum district goal of 8%. This percentage is found by taking the total budget for the year and removing the funds that are restricted for use in specific areas. The remaining funds are referred to as unassigned.

Board member Jessica Mason shared her concerns about funds coming from the sale of the District Services Center being listed as revenue when the building’s sale has not yet been completed. Rider assured her that no money from the building’s sale would be used until after the sale is finalized.

Board member Lisa Atkinson restated her concerns about the number of student-facing staff and class offerings being reduced. She suggested more administrative positions be reduced.

Stating that the district administrative staff is “skeletal,” board member Mary Frantz countered that many employees are currently filling two roles simultaneously, now that staffing cuts have been implemented. She also voiced her belief that the district desperately needs support for an updated levy.

“We’re continuing to starve our district while we’re asking them just to eat less and do more,” Frantz said.

Frantz was joined by fellow board members Dustin Smith and Jessica Olstad, along with board chair Amy Bullyan in voting yes to approve the proposed budget. Mason, Atkinson and Charles Johnson voted against it.

In the district’s five-year financial projections, Rider relayed the district’s expected general funds for fiscal years 2027-31 and three possible scenarios that would be defined by the outcome of the planned levy referendum vote in November.

The first scenario showed the five-year budget if the current operating levy was renewed per statute and the adjusted pupil unit (APU) remained $623.97. There would be no change to monthly homeowners’ property tax, which is approximately $25.75/month for homes valued at $525,000.

The second scenario contained budget projections if the current levy was revoked and replaced with a levy that updated the APU to $1,386 with an inflationary factor. If the levy was approved, a tax increase of close to $32 per month would be realized by residents owning a home valued at $525,000.

The final scenario outlined a budget that included the current levy being revoked and replaced with an updated APU to $1,741 with an inflationary factor. Owners of homes valued at $525,000 would see taxes increase by approximately $46 per month.

In scenario one, the estimated unassigned fund balance would be 8.8% for the 2026-27 school year. It would then dip to 4.53% in the 2027-28 school year. The following school years would have negative fund balances, forcing the district into statutory operating debt.

In scenario two, the unassigned fund balance would be above the 8% goal for the 2026-27 through the 2028-29 school years. It would drop to 6.89% in 2029-30 and to 2.06% in 2030-31, again leaving the district in statutory operating debt.

In scenario three, the unassigned fund balance would be above the 8% goal for the 2026-27 through the 2029-30 school years. It would go down to 6.9% in the 2030-31 school year.