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The Albert Lea school board on Monday approved its revised budget for the 2024-25 school year, accounting for a series of change in revenues and expenditures from its preliminary budget.

Director of Finance and Operations Paul Durbahn said in the revised budget the board approved the total general fund revenue increased by about $1.71 million, for a total of about $59.87 million.

The increased revenue was tied to an increase in the average daily membership of students, as well as federal funds received.

Durbahn noted though the district saw an increase in its projected average daily membership this year, it is still projecting a declining enrollment in the upcoming years because of smaller kindergarten classes compared to graduating classes.

Expenditures increased by about $2.37 million to a total of about $60.87 million. Some of the increased expenditures are tied to grants the district received for elementary school furniture and other grants, as well as increases for staffing and overall costs and services.

In the food service budget, no change was expected to revenues, but expenditures were expected to increase by $415,000 for a total of about $2.8 million.

Durbahn said the district was on the verge of having to enter a Minnesota Department of Education spend-down plan for its food service fund because the total balance in that fund exceeded six months of operating costs. Because of this, the district decided to purchase new high school and middle school cafeteria furniture, along with some equipment at the high school in the kitchen.

He said the food service fund had grown over $600,000 over the last five years, so it was an appropriate time to spend that down to a more comfortable level.

Durbahn emphasized that the district is in a healthy place financially. District policy calls for carrying a fund balance of 12%, and though the district’s fund balance in the revised budget is at 11%, that is still considered a strong fund balance.

He anticipated the district would end up between 11 and 12% by the end of the year.

Board members talked about how it would be helpful for the district to have some flexibility in how to use the excess from the food service fund elsewhere in the future, and Durban said there was some discussion on the issue at the state Legislature.

The board approves its final budget in June.

Durbahn in March told the board looking ahead that the district’s prediction model showed the district would need to reduce expenditures by over $2 million for the 2025-26 school year because of a forecasted enrollment decline, underfunded mandates, uncertainty with other funds and rising costs for services.

Specifics on those anticipated cuts have not yet been discussed.