Assistant Superintendent of Business Services, Dr. Rob Coghlan, delivered the 2025/26 school year’s unaudited actual report. This state-mandated report compares the June 2026 projected year-end budget numbers with the actual district income and expenses that an outside auditor reviews next month.

Last June, the district predicted an income and expenditure difference of $1.03 million, but after closing the books, there was only a $279,224 deficit. Deficit spending was expected this year due to early retirement offers. The district saved money from shifting special education funds, getting a better benefits deal, and normal year-over-year savings, leaving the district with an unrestricted balance of $149.29 million. Coghlan also assured the trustees that any special education spending reallocation did not cut any student services, only reassigned funding to restricted-use funds. Dr. Coghlan pointed out that there were no surprises in the budget this year; changes in income and expenditures had been foreseen and planned for.

Trustee Ruthi Hanchett questioned the $1.3 million projected deficit spending. In reply, Coghlan pointed out that, besides a planned contractual 2% staff raise, the district monitored, but could not pinpoint how much inflation would affect utilities, services, and substitute teacher costs, or exactly how much the early retirement buyout contracts would add to expenditures before knowing exact participation numbers. Coghlan also mentioned that they accounted for changes and therefore had no surprises at the end of the year with either large debts or surpluses. FSD’s current fiscal policy responsibly spends a majority of its funds to create sustainable programs, compensate staff responsibly, and provide for emergency and restricted funding.

FSD is experiencing straight-line declining enrollment, which means that more 8th graders leave each year than new TK and Kindergarten students enroll. This is happening statewide; however, FSD’s new TK and Kindergarten class this year is larger than initially projected. Coghlan emphasized that FSD needs to scrutinize all new program spending, new staff hiring, and monitor attendance rates. The business services department is watching world events, inflation, the state economy, declining enrollment, and health care increases, just like the high school district. Coghlan reassured the trustees that the district had the reserves to weather financial storms, and they are not currently overextended. Trustees approved the unaudited actuals 5-0.

The next FSD board meeting is October 13, starting at 4:45 pm with a PBIS ceremony in the district office courtyard area, with the regular meeting at 6pm.