School Board Reviews Preliminary Budget with 4.7% Levy Increase

(KNSI) – The St. Cloud District 742 School Board reviewed the preliminary 2025-2026 budget during Wednesday night’s meeting and is proposing a levy of $16.1 million, which is a 4.7% increase from what they are spending now.

District finance director Amy Skaalerud emphasized the percentage increase in the dollar amount does not directly translate to the same percentage increase in tax rates. “I want to be clear that we don’t set a tax rate. We tax differently than cities and counties, and so, 4.7% doesn’t convert to a 4.7% increase in our tax rate.”

District officials estimate the actual tax rate increase will be less than 1%, assuming similar tax capacity growth to the previous year.

The preliminary levy consists of four main components: The general fund, community education, debt service, and building lease levies. The largest portion of the increase stems from debt service requirements, driven by approximately $1.7 million from the Apollo High School referendum approved last spring. Voters said yes to major renovations and an new indoor athletic field on the campus. Enrollment growth is driving increases in the general fund portion, particularly affecting the local optional levy that’s directly tied to student numbers.

Skaalerud explained the timing disconnect between when levies are approved and when funds are actually collected. “The levy that we’re looking at right now, we will certify. The final levy comes back in December. And then those funds actually get collected from taxpayers during calendar year 2026. And they get recognized by the district as revenue in fiscal year 2027.”

The board will certify the preliminary levy amount, with the final levy coming back for approval in December.

___