A projected decline in student enrollment, changes in state funding and declining state assistance for the local school district’s bond payments are contributing to a proposed increase in USD 257’s overall mill rate for the coming school year.
Superintendent Stacey Fager walked board of education members through the district’s 2026-27 budget and revenue-neutral rate calculations Monday evening, explaining how student enrollment and various state funding weightings determine the district’s general fund authority and how local taxes help finance the remainder.
Fager said the district’s budget is fundamentally different from the way many local governments establish their budgets.
“In a school district, your budget is determined by the number of students you have,” Fager explained.
For 2026-27, the district is estimating 990 full-time students, down from the 1,075 students used in last year’s budget. Fager said the district intentionally budgets somewhat higher than its anticipated enrollment because estimating too low can force a district to republish its budget later.
The district is estimating 70 preschool students for the coming year, which are counted as 35 half-time students for funding purposes. That brings the district’s adjusted full-time equivalent enrollment to 1,025.
Fager said the preschool estimate is lower than last year’s because Moran and Humboldt have established their own pre-K programs, while Colony also has a program.
The district then adds a series of state funding weightings based on factors such as low enrollment, career pathways, students considered at risk, high-density at-risk enrollment, transportation and special education.
THE LOW-enrollment weighting adds 243.8 students to the district’s funding calculation. Career pathways add another 29.2 students, while the at-risk weighting adds 314.6. The district also receives a high-density at-risk weighting of 68.3 students.
Transportation weighting adds 52.2 students for students who live more than 2.5 miles from school. Fager noted the district also provides afternoon shuttle routes but does not receive state reimbursement for those routes.
Special education adds another 306.5 full-time equivalent (FTE) through the state’s funding formula.
After all of the applicable weightings are included, the district reaches an estimated 2,042.4 students for funding purposes. That figure is multiplied by the state’s per-student funding amount of $5,788, with additional virtual funding included.
The resulting estimated general fund budget authority is $11,996,987.
“That tells us right now based on our students and all the weightings associated with it, this is what it should take to run our school system on the general fund side,” Fager said.
The district’s Local Option Budget, or LOB, is calculated separately. The district is authorized to assess 33% of the applicable general fund amount, resulting in an LOB authority of approximately $3.94 million. About $1.2 million of that amount can be raised locally, with the remainder supported through state funding. The LOB allows the school district to increase operational spending beyond state aid using a combination of local property taxes and state equalization aid.
THE DISTRICT’S overall mill rate has declined substantially over the past several years.
