NRHEG School board approves 2025-26 budget

Members of the NRHEG school board approved a budget for the upcoming school year which includes just over $13.5 million in expenditures, alongside slightly less than $13.3 million in anticipated revenue.

 

District business manager Karla Christopherson acknowledged those numbers lead to a decrease in the “general fund,” monies set aside at the advice of financial organizations to act as a buffer if incoming funds should be delayed. General guidelines stated during past school board meetings are that the amount in the general fund should be enough to support somewhere between three and six months of operation. 

 

While a projected $417,000 decrease in the $10.5 million general fund was not appealing to board members, Christopherson quickly explained her numbers could not include $350,000 in income due to be paid to the district after the end of the 2025-26 budget year. 

 

NRHEG has been named as a recipient of an “alternative delivery of specialized instructional services” (ADSIS) grant for both of the next two school years. The terms of the grant specify the district should deliver eligible services at its own expense, then be reimbursed after the end of the school year. 

 

So, although the $350,000 could not be included in Christopherson’s official summary, the anticipated income sharply reduces the actual decrease in the general fund to about $67,000.

 

Christopherson went on to say keeping a strong general fund balance provides significant financial benefits and also sends a message to contractors, potential lenders and others regarding the district’s financial health. Noting that, of 362 districts in the state, NRHEG is among about one-fourth which do not rely on an additional tax referendum from area property owners to continue operations, she expressed the possibility that a persistently shrinking general fund might indicate the need for a referendum is approaching. Numbers shared in the past indicate about 17.5 percent of the school’s costs of operation are paid by local property taxes, with the remainder coming from state, and to a limited degree, federal sources.

 

Tyler Firme of Owatonna’s Heinz Insurance Agency presented board members with a comprehensive insurance quote for the 2025-’26 budget year, stating the overall cost for nine types of property, liability, workers’ compensation and auto insurance had risen by only 3.5 percent. Firme stated that, among his clients, any increase less than 10 percent is regarded as very good, then went on to say insurance company investigators had toured district buildings and found the new safety upgrades reassuring. All policies through the Heinz Insurance Agency in 2024-25 were just over $142,000; for 2025-’26 they will be a bit more than $147,000.

 

School superintendent Michael Meihak announced he had already begun interviewing candidates for the elementary principal position left vacant with the resignation of Craig Kopetzki. Kopetzki has accepted a position as assistant principal at the Waseca Junior/Senior High School. Meihak reported interviews will continue into the week of June 23, with an offer and perhaps a newly named principal taking place soon afterward.

 

As the meeting finished, board members presented retiring administrative assistant Sue Kulseth with gifts that included a lounge chair and bucket full of some of her favorite treats. They thanked her for her 10 years of service, and for handling the many details involved with various gatherings–especially the staff events at the start and close of the school year. In place already for the past few months is Sarah Wacholz, who with her husband Tom lives just outside New Richland.