By Rich Larson, KYMN News
Northfield school leaders say the district’s financial outlook is stronger than expected this year, thanks to a combination of one‑time revenue and last year’s difficult round of budget reductions. Northfield Superintendent of Schools Dr. Matt Hillmann outlined the district’s updated financial forecast this week as the school board adopted its revised budget—an action typically taken in December but delayed this year because the federal government shutdown slowed the district’s annual audit.
Hillmann emphasized that Northfield’s four‑step annual financial cycle gives the board – and the community – multiple checkpoints each year. The revised budget, he said, is the bridge between the audit and the district’s long‑range financial projection, which begins each January. That projection incorporates known factors as well as assumptions about state funding, enrollment, and cost pressures.
The audit brought unexpectedly good news. The district ended the last fiscal year in a “much better revenue position” than anticipated, largely due to one‑time special education funding. As a result, Northfield now expects to finish the current year with a fund balance just above 18 percent—an improvement, Hillmann said, over the original projection of 15 percent and comfortably above the district’s 14 percent target.
Hillmann cautioned, however, that the district still faces the same structural challenge: declining enrollment. A new demographic study shows a steep drop in kindergarten enrollment compared to 15 years ago, mirroring national trends. Even with a state‑mandated increase to the general education formula in 2026–27, the new revenue that is coming to the Northfield School District will not be as high as it might have been, because funding is tied to the number of students enrolled.
“For 2026-2027, we know that we will get at least 2% increase to the state funding formula because that’s the law. It goes up by inflation, or by a minimum of 2%. We know there’ll be some increase because the special education formula also has some inflationary factors built in. But because our system is based upon funding the students who we have enrolled, we’re only going to realize 1.4% new revenue for our budget.”
Still, Hillmann said last year’s $5.8 million in reductions—developed with input from more than 80 community members—combined with the stronger year‑end revenue position, will give Northfield financial stability through at least the 2028–29 school year. The district will now begin its spring budgeting process, balancing long‑term stability with investments that support student success.
Rich Larson is the owner and General Manager of KYMN Radio. Contact him at rich@kymnradio.net
