4/14/2025 Work Session & Survey

Work Session highlights:

  1. Wilson Elementary School Report
  2. Owatonna Online School Report
  3. Community Survey & Budget Review

For Wilson Elementary, Mrs. Cassie Mitchell, principal of Wilson school, gave the presentation with a few Wilson staff members. They focused on Wilson’s community, culture, and curriculum, highlighting the importance of the Teaching and Learning Coach and the school counselor in their respective roles. Also noted was the work toward the alignment of the elementary schools with one another, recognizing the differences among the schools, but working toward consistency between schools also.

The Owatonna Online School presentation was given by Kelly Kruger, director of K-6 grades and Martina Wagner, principal of 7-12 grades. With approximately 450 online school entities in Minnesota, Owatonna is in the top 5 of fastest growing online programs. This includes students enrolling through open enrollment but also through tuition agreements that we have with several districts in Minnesota. Superintendent Elstad and Dr. Wagner confirmed that they are receiving calls daily from parents and other districts interested in our online program. This exponential growth is, in part, due to the wide variety of services and programs we offer online, as well as our teacher/staff engagement with students and families. At the time of this work session meeting, we have 419 students enrolled in Owatonna Online School. Most of those students are in grades 7-12. Due to the <10 students enrolled in grades K-3, administration has elected to offer online school only for grades 4-12 beginning in the Fall 2025. The online program also helps our district financially. Our district was able to implement the program with federal ESSER funds that were given to the district during the COVID pandemic. Students that are open enrolled from other districts allow us to receive 100% of government funding for that student, while students enrolled through districts that have a “tuition agreement” with Owatonna Public Schools allows us to receive 60% of that funding. The district where these students reside receives 40% of that funding, and the student can participate in any extracurricular activities in their home district. Owatonna administration has worked hard to make this program what it is today, and it is another reason that Owatonna Public Schools excel in Minnesota!

At 6:30pm, I left the meeting to attend my son’s spring choir concert. Therefore, I can’t speak exactly to what was said for the remainder of the meeting, but I will speak to the last agenda item, Community Survey. This survey was discussed at a finance committee meeting, of which I attended with 2 other board members (incoming Superintendent Dr. Tammy Champa also attended). Morris Leatherman is a survey company that the district has used in the past for surveying the community when important decisions are needed. This time, we are looking for the input of Owatonna residents regarding the value of our schools, and the willingness to financially support our district. Many Owatonna residents will receive a phone call from staff at Morris Leatherman, asking to complete a 15-minute phone survey. Please take the time to answer these questions if you are called. Only surveys that are 100% completed will be included in the results.

One concept I didn’t learn until becoming a board member is that “bonds are for buildings, levies are for learning.” Therefore, the finances used for physical updates (HVAC, pool project, etc) and building the new high school are separate from the finances used for staff, curriculum, special education services, etc. School budgets are incredibly complicated, and revenues are specifically designated to buckets which cannot be mixed. The survey results will assist the board in deciding if we can ask the community to support a levy in the November 2025 election. To explain this further, I have included previous board presentations below.

A financial update presentation was given 2/10/2025 revealing upcoming budget shortfalls: https://meetings.boardbook.org/Public/Agenda/1055?meeting=672068. These are primarily due to loss of federal funding, increased special education costs, higher than typical salary contract negotiations, and the expected decline in future student enrollment (said to be due to declining birthrates). Owatonna is not unique in its circumstances as many districts across the state are in worse financial straits.

The amened budget was reviewed 3/10/2025: https://meetings.boardbook.org/Public/Agenda/1055?meeting=678984. One of the most important lines to monitor is the “unassigned fund balance” and the percentage of total that this entails. Our board-determined unassigned fund balance goal is set at 8-10%. Currently, we are sitting at 12.25%. However, if nothing changes, it is estimated that our unassigned fund balance will shrink to 4.52% by 2028 and -2.35% by 2029 (as discussed at our last finance committee meeting which is open to the public.) This is the reason the district recently cut 7.35 FTE, and did not replace 2 retired staff members, for the 2025-2026 school year.

Also note a change to the upcoming board meeting: the May work session is rescheduled from 5/12/2025 to 5/15/2025 – 5:30om – at the district office. This is to allow Morris Leatherman the time needed to conclude survey results and present to the board.

I hope I was able to explain this complicated circumstance in an accurate reasonable manner so that it makes sense. Board meetings and finance committee meetings are always open to the public so please attend and ask questions if desired. If the board determines that it is in the best interest of the district to ask for a levy, there will be several means to gather more information so that you can make an informed vote in the future.

Next regular board meeting is Monday April 28,2025.

Jesus is risen from the dead. Blessings to you and your families as you celebrate resurrection day! Soli Deo Gloria!

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