RIVER FALLS — The River Falls Board of Education heard an update on where the district falls in terms of per pupil funding, how the 2024 recurring referendum aided the district’s outlook and the results of the audit at the Jan. 19 meeting.

During Superintendent David Bell’s report, he discussed future budget realities. In 2024, residents voted in favor of a recurring operating referendum of $1 million in 2024-25, $2 million in 2025-26 and $3 million in 2026-27. The $3 million increase to the revenue limit is permanent, but, after 2026-27, “the only increases allowable will be per pupil revenue limit increases set by the state budget.”

The referendum takes the district’s per pupil funding from $11,666 in 2025-26 if the referendum was not passed to $12,344 with the passage. Compared to the regional average (Hudson, New Richmond, Ellsworth, Prescott, St. Croix Central, Menomonie and Baldwin-Woodville) of $12,396 per pupil, the district stacks up close ahead of the final referendum bump.

Because of a decline in overall enrollment and an increase in enrollment of students with disabilities, the overall revenue limit starts to dwindle as expenses increase.

“I want to stress that we’re not in a dire situation, but high-functioning districts get ahead of these things, have communications so stakeholders understand the current realities,” Bell said.

“If we had not passed that referendum, the conversation that I’m having tonight would have had to have happened two years earlier, and the current and last year’s budget would have looked significantly different,” Bell said.

Another piece Bell mentioned is that increases to the revenue limit in the state’s 2025-27 biennial budget entirely came through local tax levy rather than through state aid. With no increase to state aid and declining enrollment along the way, Bell said the district is left to answer some questions.

“What that means is, given some of our realities, the district is going to be required to address staffing and insurance adjustments to the budget to operate in a sustainable manner,” Bell said. “That’s the work that the district leadership is going to be engaging in over the next 6-8 weeks as we prepare for the next school year.”

Bell said administration will continue to update staff and the community and will seek feedback throughout the navigation. Board Vice President Alan Tuchtenhagen said it is important to continually update people so that no one is caught by surprise.

The board also reviewed the highlights of the 2025 Baker Tilly Financial Audit.

“The results provided reasonable assurance that the financial statements are free from material misstatement,” Board Treasurer Mike Miller said.

Director of Finance and Facilities Lynette Coy said there was a reported deficiency in internal controls.

“This is really due to the fact that the district doesn’t complete and prepare its own financial statements,” Coy said. “Of all of the school districts and municipalities [of River Falls’ size] that they audit, 90% of them have this finding, and it just really comes down to staffing and resources that are available.”

General fund and fund balance numbers were both at acceptable levels and are at the high end of board policies, Coy said.