Rock Ridge passes 2026-27 budget, but 'getting lower and lower’ on cash

Rock Ridge spent most of the late winter and early spring paring down its spending to crawl out of a $2.5 million projected shortfall.

The School Board, on Monday, June 22, unanimously passed its 2026-27 budget, leaving a little more than $136,000 of cash flow available in its general fund. Directors John Uhan and Tim Riordan were absent.

“We are projecting a deficit of $262,526,” said Business Manager Andrea Lintula. “That is a difference from the June 8 meeting due to the updates that I made.”

Directors approved changes to increase substitute teacher pay and move a half-time music teacher up to full time, incurring benefits cost with the latter move. Changes to retirement also factored into the new deficit number.

Rock Ridge policy stipulates the board should “strive” to maintain an unassigned fund balance of 8-12% of its budget, at minimum. Lintula said at 8%, the district would need to have a cash flow amount of more than $3 million. At 12%, the fund balance would be more than $4.5 million.

“We are definitely not meeting that,” she said. “We have our deficit and we’re getting lower, lower and lower.”

The district took a number of steps to reduce its original shortfall projection, including reducing the activities budget by 20% and moving some staff into special education roles. Some retiring staff were not replaced and some positions were cut.

Rock Ridge also sold the old Gilbert school properties, and Superintendent Dr. Noel Schmidt accepted a new contract with no raises during the three-year term.

Directors considered a four-day school week to save money, a projected $257,000 impact, but ultimately just a small percentage of the difference between the current unassigned fund balance and the board’s goal posts.

Director Brandi Lautigar supported the four-day week when it came to a vote, and said Monday that the district should keep it in discussion for the years ahead.

Schmidt said most of the research shows an eventual decline in student performance as four-day weeks go into multiple years, but Lautigar said Rock Ridge did not have data for area schools taking that track.

This year was the first school session for Mountain Iron-Buhl and St. Louis County Schools on a four-day week. The latter faced major budget reductions this year. Ely approved the four-day model for next year.

“It just needs to be on the table for further discussion,” Lautigar said. “I just think year after year, we’re gonna continue to have issues … and we end up back in the same hole where we have a deficit.”

Other budget notes

• Lintula said the Medica healthcare renewal through Northeast Service Cooperative came in lower than projected. She factored the 9.9% increase into the latest budget numbers. The original expectation was a 15% increase.
• Schmidt discussed a November election ballot item that is a constitutional amendment in Minnesota to change the Permanent School Trust Fund formula. If approved by statewide voters, all districts in the state would receive extra dollars from the fund in 2027-28. Rock Ridge would get a projected $64,000. “That’s a teacher,” Schmidt said.
• The board voted unanimously to send a revised work agreement with Community Education Director Chad Hazelton back to the personnel committee. He requested a reworked deal that would add 30 working days to his year, which essentially amounted to a 13% pay raise. Multiple board members said it sent the wrong message considering the district’s tight budget. The funds used to pay his salary can only be used for Community Education. “I think it’s in poor taste,” said Director Nicole Culbert-Dahl. “We’re asking everyone to tighten their belts across the board.”
• A bid around $14,000 was approved for footings on a deep winter greenhouse near the Life and Learning Center on the Rock Ridge campus. The bid was about $36,000 lower than two others. Schmidt said the company was willing to work with district on things the others were not. He also said it would be a slow-build project considering the budget, but that industrial technology teacher Greg Foster plans to use it as a project-based learning assignment where students would build the greenhouse portion.

Accessing the Rock Ridge School Board

Rock Ridge School Board agendas, material and minutes can be found on the district’s website. Livesteams and meeting recordings are available on YouTube.