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Waite Park Today
By the People, for the People
St. Cloud School District Approves $24.2M Plan Amid Uncertain Education Funding
District sets aside 20% reserve, plans for possible state cuts as special education enrollment rises.
Apr. 2, 2026 at 1:36pm
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The St. Cloud Area School Board has approved a $24.2 million compensatory revenue plan for the 2026-27 school year, setting aside 20% in reserve as district leaders brace for potential cuts to state education funding. The plan includes a projected $24.2 million allocation and a 20% hold-back for district-wide needs, as the district expects about $22.2 million in compensatory funding tied to the number of students who qualify for free or reduced-price lunch.
Why it matters
With nearly 67% of District 742 students qualifying for free or reduced-price lunch and about a quarter receiving special education services, the district is preparing for the possibility of funding cuts from the state legislature. The district is using the 20% reserve to support staff positions focused on reading, math, mental health, and special education as enrollment in those areas continues to rise.
The details
The school board unanimously approved the plan, which includes a projected $24.2 million allocation and a 20% hold-back for district-wide needs. The district expects about $22.2 million in compensatory funding, but is budgeting conservatively due to uncertainty around potential changes to the funding formula by state lawmakers. The district plans to use the 20% reserve, about $4.45 million, to support 43 staff positions focused on reading, math, chemical health, mental health services, alternative-to-suspension programming, and special education staffing.
- The school board approved the plan at its meeting on Wednesday, April 1, 2026.
- The district will hold retiree recognition at 5:45 p.m. before the board meeting on Wednesday, May 20, 2026.
The players
Amy Skaalerud
The executive director of finance and business services for District 742.
District 742
The St. Cloud Area School District, which has 10,232 enrolled students.
What they’re saying
“If there's an absolute worst-case scenario where we don't see any increase, we'll have spent about $1.8 million to $2 million more than our current funding.”
— Amy Skaalerud, Executive Director of Finance and Business Services
“So far, from what I've heard, there are no great solutions coming out of the Blue Ribbon Working Group. The solution, if there's no kind of 'aha' moment, is to reduce the cross-subsidy reduction aid which was added.”
— Amy Skaalerud, Executive Director of Finance and Business Services
What’s next
The district will hold retiree recognition at 5:45 p.m. before the board meeting on Wednesday, May 20, 2026.
The takeaway
The St. Cloud Area School District is taking a proactive approach to managing its finances amid uncertainty around state education funding, setting aside a 20% reserve to support critical staff positions and programs as enrollment in special education and free/reduced-price lunch continues to rise.
