Northfield Public Schools is not unlike other rural districts in Minnesota, facing declining enrollment, which affects funding. (File photo photos/southernminn.com)
After being named the 2023 Minnesota Superintendent of the Year, Matt Hillmann, Northfield School Districts Superintendent, has now been selected as one of four finalists a for the 2023 National Superintendent of the Year. (Pamela Thompson/southernminn.com)
Northfield Public Schools is not unlike other rural districts in Minnesota, facing declining enrollment, which affects funding. (File photo photos/southernminn.com)
Facing declining enrollment, high inflation and the end of COVID funding, the Northfield School Board heard a sobering financial forecast, which could be sweetened this year by legislative action regarding the state’s multi-billion-dollar surplus.
Val Mertesdorf, director of finance, provided an updated financial forecast for the Northfield School District’s 2023-24 budget. She reported that enrollment, which is declining in Northfield, like most districts, drives 70% of the total revenue, and that 80% of the budget is directed to paying salary and benefits.
Mertesdorf, who is now in her 12th year with the district, said the financial cycle used each year has been a good tool in staying on top of the budget. After the January budget projection comes the April to June period when the board adopts the budget, followed by the September to November period with the audit report, and the cycle concludes with the revised budget in December.
She said high inflation has impacted finances significantly, as well as the increased cost of property insurance renewal and work compensation. She forecasted a deficit budget for 2023-24 “that is not sustainable.”
District Superintendent Matt Hillmann said he’s “thrilled with the numbers out of St. Paul,” referring to the possibility of Gov. Walz tying the basic formula to inflation. The basic formula is the amount of funding school districts receive from the state for each student. It is not risen with inflation for a couple decades.
“Tying the formula to inflation makes school finances more predictable,” Hillmann said. “Because we are experiencing declining enrollment, these state increases would help us have a softer landing in adjusting to the reality of less revenue.”
Hillmann added that his staff is still advocating for more dollars directed to the formula and that the state fund the entire special education cross subsidy.
“That is what would make a real difference,” he said.
Board member Jenny Nelson asked how much enrollment would have to increase to pull the district out of a deficit? Mertesdorf answered approximately 150 more students.
“This is not Northfield specific,” she said. “Most rural districts are experiencing declining enrollment. With a 178-square-mile district, we are geographically different than the metro.”
Evaluation
Board Chair Claudia Gonzalez-George shared her summary of the superintendent’s mid-year performance evaluation. She said six out of seven board members completed the performance rating, giving Hillmann a score of 4.7 out of 5.
After being named the 2023 Minnesota Superintendent of the Year, Matt Hillmann, Northfield School Districts Superintendent, has now been selected as one of four finalists a for the 2023 National Superintendent of the Year. (Pamela Thompson/southernminn.com)
“He has cultivated strong relationships with the staff and the community,” she said. Hillmann also received excellent scores regarding instructive leadership, financial management and staff relations. Gonzalez-George said his proven leadership track record is reflected by receiving the state’s Superintendent of the Year award, as well as being nominated as one of four finalists for a national title.
Pulse survey
Hillmann provided an update about district operations and examples of work underway to achieve the district’s vision, strategic commitments and benchmarks.
Engaging families in ongoing conversations that go beyond parent-teacher nights at the schools was one way for parents to measure how their child is doing in school, he said. Another way to measure the relationships being built between teachers and students was through the Pulse Survey.
“This year, we received 611 responses recognizing great work done by over 150 of our teachers and staff,” he said. “We send these shout outs directly to the teachers and staff. We find some common themes and look to replicate success.”
Governor Walz formally proposed his budget for the next biennium Tuesday. Walz, a former educator, has made children a priority in his budget, and because of that his budget offers large increases in state education funding. The plan would add 4 percent to the basic school funding formula this year and another 2 percent the following year. And it would automatically tie future spending increases to the inflation rate. It also calls for free meals for all students and would bolster spending for special education.
Items for individual action
The board voted to approve the dissolution of the girls hockey cooperative sponsorship with Randolph Independent School District 195, beginning with the 2023-2024 school year as proposed. The governing boards of each participating school must jointly make an application for dissolution of cooperative sponsorship to the Minnesota State High School League.
Turning to Policy 801, the board approved the policy committee’s recommended updates to policy 801 as presented.
Shifting to board committee assignments, the board voted to approve board member committee appointments and representation to various organizations and school liaisons for calendar year 2023 as presented at the Jan. 9, 2023 organizational board meeting.
After announcing the next three meetings scheduled, including the Feb. 4 workshop, the meeting was adjourned at 7:14 p.m.
{span}Pamela Thompson is the associate editor for the Northfield News. Reach her at 507-645-1115 or pamela.thompson@apgsomn.com.{/span}
