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Over the past several years the North Branch Area school district did see a growth in student population of six percent— but there were a couple of years when enrollment dipped, which happened again for fiscal year 2025 and became apparent in the audit presented to the School Board.  

North Branch enrollment dropped from 2,723 to 2,687.  In Minnesota— the state aid funding formula is pretty much based on enrollment, so districts confront a fiscal balancing act nearly every year.  

State aid represents over 70 percent of what schools receive generally.    

For North Branch Area Public Schools the local levy contributes 12 percent and the state provides 80 percent.

Minnesota school districts are all adopting their next year local levies and budgets right now and  ISD 138 School Board members acted on these and also received the annual audit by CLA LLP last week. This audit found no compliance issues and the presenter Mary Reedy, said North Branch financial records and staff response for documents were outstanding.  

Amongst the pages of statistics compiled by Clifton, Larson Allen LLP (CLA) accountants, there was a reminder of the huge dip in federal program funding for 2025.  From 2021 to 2024 the federal government sent $2 million to at least $1.4 million annually, to North Branch, and for 2025 this was $484,000.

The best way to prepare for these kinds of uncontrollable fluctuations, the Board was told, is to maintain healthy balances and monitor spending and revenues closely.  North Branch Finance Director Dr. Todd Tetzlaff said, with the help of a great team in administration and individual school offices, the district did end up spending down some of the balance(about $53,000) but the district is in a good position.  

North Branch even managed to end the year with carryover in the food service fund.  Free meals for students in Minnesota was mandated as the rule, and districts had concerns about keeping this in the black. 

North Branch School Board Chair Tim McMillan, remarked,  getting to this point and needing only a hike in levy for next year of under one percent, is commendable.  North Branch looks under every rock and finds the outside funds to support special expenses and innovations, he concluded.

The School Board voted 6-0 to set the district property tax levy at $10,123,678 to support an overall budget of nearly $50 million. This is a hike of just .87 percent.

Nobody was attending the levy hearing from the public.

FYI...

There will be a ballot going to the taxpayers in February asking for authorization to renew a levy that’s been put in place and designated for technology needs, which expires by 2027.  This asks voters for authority to continue the existing tax at the same level. 

The Board established a single polling place for voting, at Mainstreet Church.  All school district voters will use this site which will be open from 7 a.m. to 8 p.m. February 10, 2026.

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