Hastings School District plans to use fund balance to cover projected deficit

Posted 4/1/26

The Hastings School Board covered a wide range of district business during its regular meeting Wednesday, March 25, including a detailed financial forecast, updates on student programming and a …

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Hastings School District plans to use fund balance to cover projected deficit

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The Hastings School Board covered a wide range of district business during its regular meeting Wednesday, March 25, including a detailed financial forecast, updates on student programming and a renewed push to strengthen ties with the community.
The meeting opened with reports from student school board representatives, who highlighted academic, artistic and extracurricular activities taking place across the district.
Students reported strong participation in Minnesota Youth Art Month, where multiple Hastings Middle School students placed in the top five statewide—an achievement staff noted as a first for the school. Spring activities are also ramping up, with testing season underway and spring sports set to begin April 1.
At the elementary level, STEM nights, author visits and partnerships with organizations like the Science Museum of Minnesota provided hands-on learning opportunities. At Hastings High School, students recently participated in a Polar Plunge fundraiser for Special Olympics, packed thousands of meals through Feed My Starving Children and continued a busy season of concerts and performances.
Board members praised the breadth of opportunities available to students and the strong connections between schools and community partners.
Director of Teaching and Learning Andrew Hodges presented an overview of the district’s achievement and integration (A&I) plan, a three-year program aimed at improving academic outcomes and ensuring equitable access to opportunities.
The district receives approximately $336,000 annually in A&I funding, which supports initiatives such as AVID programming, translation services and a Native American liaison position. Hodges emphasized that the work is focused on closing achievement gaps, increasing participation in college-level coursework and strengthening collaboration among students of different backgrounds.
“Achievement integration has a lot of different groups that we address,” Hodges said. “It’s really about how we’re making sure all students are successful.”
Board members also noted that the district has only utilized this funding since the 2019–20 school year, expressing appreciation that the district is now fully leveraging the resource.
Director of Finance and Operations Jennifer Seubert provided a high-level financial forecast, projecting a $1.5 million deficit for the 2026–27 fiscal year. Rather than making immediate cuts, the district plans to use fund balance reserves to cover the shortfall in the short term.
Seubert said the district remains in a stable financial position, with a projected fund balance of about 27%, well above the board’s 16% minimum policy target.
However, declining enrollment continues to present long-term challenges. The district expects to lose approximately 86 students next year, continuing a decade-long trend that directly impacts revenue.
“While we are able to manage this in the short term, it is not a long-term solution,” Seubert said, noting that additional planning will be needed as enrollment declines and the district approaches the expiration of its operating referendum.
The board also received an update on building construction funds, with several projects completed under budget and new improvements underway, including ventilation upgrades and security enhancements.
Board members spent considerable time discussing efforts to strengthen communication and trust with the community following recent survey feedback that indicated a disconnect between residents and the school board.
An upcoming community collaboration event scheduled for April 1 at the high school will focus on listening rather than presenting, with board members seeking direct input from residents.
“We want it to be a space for people to be heard,” one board member said. “We’re coming with questions because we want to hear what people have to say.”
Board members encouraged teachers, parents and community members to attend and participate in ongoing conversations aimed at improving relationships and transparency.
The board unanimously approved its consent agenda and accepted nearly $60,000 in donations to the district. Members expressed appreciation for the continued financial support from the community.
The meeting also included committee updates, including regional education initiatives and workforce challenges, particularly in hiring teachers in high-demand areas such as special education and career and technical education.
The board will hold several meetings in early April, including the community collaboration event and a policy committee meeting. District leaders emphasized that continued community involvement will be critical as the district navigates financial pressures and plans for the future.
The next regular school board meeting is scheduled for April.