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The ISD 197 School Board gave the administration the go ahead to make $2.5 million in cuts to the upcoming budget. The board also heard about a health clinic in the high school, Kindness Day, a student newspaper, and llamas at Mendota Elementary School.
Budget Framework
At the previous meeting, the board reviewed the budget framework in detail and repeated the presentation at this meeting for the sake of the community watching the televised meeting. The framework will give the administration direction on crafting the final budget for approval in June.
- Overall problem: The challenge the district, and most school districts in Minnesota, face is rising costs and a state funding gap. While the legislature did tie some school funding to inflation for the first time in decades, there’s still a gap where school funding continues to fall behind.
- Specific numbers: Without changes, ISD 197 is looking at a nearly $1.3 million deficit for the 2026-2027 year, with future years even worse. That would require dipping in to the fund balance, reducing it to 2.8%. The board has a policy to maintain a fund balance of 8%, though they’ve been below that in recent years to avoid steep cuts. The proposed budget would make cuts and be $1.2 million in the black, raising the fund balance to 5.2%. Future years still trend downward, but not as bad.
- Parameters: The administration will keep class size parameters the same, cut $2.5 million from the budget, freeze supply budgets, and attempt to keep cuts at the district/admin level and not in the classroom. The administration wants to cut as little as possible now in the hopes that funding outlooks will improve in future years.
- What’s next: The board unanimously approved the budget framework and the administration will begin work on budget specifics, bringing a final budget back for approval in June.
Legislative Priorities
One of the big challenges in the district’s budget is due to state funding gaps. Superintendent Peter Olson-Skog talked about the district’s legislative priorities and lobbying legislators to improve funding. They’re focusing on three areas:
- Compensatory revenue: The state changed its formula for poverty funding, resulting in wild changes—ISD 197 lost $500,000. In previous years, the state rescinded those changes and restored funding, and the district is asking the state to do so again this year.
- More flexibility in funding: The district wants more flexibility in using funds. Currently there are multiple fund streams tied to specific uses. For example, ISD 197 saved money on an HVAC project, but those funds are restricted and can’t be used for other purposes.
- Repeal special education cuts: The state proposed cutting $250 million from special education without a plan to do it, which puts more pressure on districts to pay for required special education services from the general budget.
School Health Advisory Committee
The district’s School Health Advisory Committee (SHAC) gave a report that focused on the new school-based health clinic. This is a partnership with Riverland Community Health that puts a health clinic in Two Rivers High School. Known as Warrior Care, it’s an opportunity for students and staff to access healthcare on campus.
- Benefits: Having a clinic in a school can reduce barriers to care and lead to fewer absences.
- How it’s used: In the fall, most visits were for for vaccines. Today, three-fourths of the visits were for sports physicals.
Recognitions: PK Press & Kindness Day
Olson-Skog recognized two student groups:
- Pilot Knob: Student journalists from Pilot Knob talked about creating the PK Press student newspaper, with stories on how schools get their supplies, interviews with community members, weather reports, and comics.
- Somerset: Students from Somerset shared about their annual Kindness Day event where students participate in service projects. KSTP reported on their efforts.
Other Items on the Agenda
- SEL update: Staff gave an update on Social Emotional Learning targets, highlighting toolbox resources created for staff and community partnerships.
- Contract: The board unanimously approved a contract settlement with the child nutrition workers’ union, which represents about 40 employees. The new contract has a 1.75% pay increase the first year and a 1.25% increase the second year, as well as increases to certification pay, and health insurance changes.
- Student representatives’ report: Student Representatives Rhys Walsh and Evangeline Fuentes gave updates on llamas visiting Mendota for pajama day, I Love to Read Month, a grant Pilot Knob received for Lego education kits, Moreland’s Sparks Day, an under the sea art exhibit at Garlough, Somerset’s Kindness Day and two teachers recognized as Teacher of the Year candidates, a readathon at Friendly Hills, a school pantry at Heritage, and high school athletes, including Charlotte Chandler winning the 2026 Athena Award.
- Superintendent’s report: Olson-Skog highlighted the Two Rivers College Fair, Friendly Hills placing third in the Future Cities competition, Mendota’s Black History Month luncheon, School Bus Driver Appreciation Day, and the upcoming Shrek the Musical performance by Moreland students at Two Rivers on March 13.
Engage
- More: Agendas and minutes for ISD 197 School Board meetings are available online.
- Watch: You can watch this meeting online. Olson-Skog and Board Member Jon Vaupel also gave a video recap of the meeting.
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