By Logan Wells, News Director | Logan@kymnradio.net
Last week, the Northfield Public Schools administration published its recommendations for budget reductions based on the input and feedback they had received from the nearly 60 people in the budget reduction committee.
In January, Director of Finance Val Mertesdorf gave the annual financial forecast for the district, which showed that $6 million in budget reductions would be needed in the next year, primarily because revenue growth has been outpaced by the rate that expenses have gone up. District leaders have cited three reasons, declining enrollment, unfunded state and federal mandates, and inflation.
PREVIOUS STORY (1/31/2025): Northfield Public Schools Receives An Updated Financial Forecast; $6 Million in Budget Reductions Needed; District Looking For Volunteers To Join Prioritization Team
Student enrollment in the Northfield School District is set to decrease 0.93% per year for the foreseeable future. Mertesdorf noted the significant impact that fewer students have on the district since the vast majority of school funding is based on the number of students:
“The per-pupil Funding is 50% of our total revenue. So we have zero control over 50% of our revenue. I want to make that clear: It is a dollar amount times the number of our students. So when our students are declining, we’re having less revenue… And so when we look at that across the board, that’s roughly 3.5 students per grade. So, it’s not as simple but roughly, a student generates about $10,000. So we’re talking about potentially losing over $500,000 of revenue.” – Director of Finance Val Mertesdorf at the 1/27/2025 School Board Meeting
Requirements from the State and Federal government that also have no accompanying funding are also proving to be difficult for the district. District leadership has cited Special Education Services as one of the most significant sources of unreimbursed costs at approximately $4.3 million a year. Schools Superintendent Dr. Matt Hillmann called these programs morally imperative and well-intended, but an example of the district having to subsidize mandate programs.
Inflation has also been impacting the district as well, Hillmann cited insurance and payroll as one of the main examples:
“Like everyone else, we’re seeing insurance go up across the board. So we’re seeing an anticipated 5% of health insurance, 6% increase in other post employment…. So a 26% increase in our property liability insurance in one year and of course that’s a nationwide thing.” – Northfield Schools Superintendent Dr. Matt Hillmann on the KYMN Morning Show
The proposed budget reductions are split amongst five categories: Activities, District Services, Elementary, Secondary, and Special Services.
View the proposal below or click here to download the full report
The School District intended on hosting a public forum tomorrow night, however, the event has been rescheduled to 6pm on Thursday, April 3rd at the Northfield Middle School.. At the beginning will be a budget presentation at 6pm. Starting at 6:30pm will be Small Group Discussions with board members and administrators from 6:30pm till 7:45pm. For the rest of the meeting, till 8:30pm public comment will be available in the auditorium again.
Because of the format style of the event, it will not be recorded. KYMN will be recording a news special with Superintendent Hillmann, Finance Director Mertesdorf, and School Board Member Ben Miller. Will keep you posted when that program will air and be available as a podcast in the next week.
Mertesdorf assured everyone that the district remains in a good place overall and that this is part of a responsible budget process.
“Overall, we are currently in a strong financial position, and we want to continue to be in a strong financial position. We are being responsible and making hard choices to ensure that we can be in that position and have the resources we want and need to provide for our students.” – Director of Finance Val Mertesdorf at the 1/27/2025 School Board Meeting
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