Fiscal 26 Financial Challenges

Message to Staff and Community Regarding FY26 District Financial Challenges

Dear Staff and Community Members,

I am writing to share an important update regarding the district’s current financial position.

At the end of calendar year 2025, the School Board received information in connection with its annual audit suggesting a need to review certain internal control practices. As a result, a comprehensive review of the district’s financial position is now underway using both internal and external resources.

As part of this work, a thorough review of the Fiscal Year 2026 budget (July 1, 2025 – June 30, 2026) has been conducted. This review included both the original budget presented to the Board for approval and a comparison of year-to-date actual revenues and expenditures.

Based on this analysis, it appears that revenue projections were overstated by approximately $833,000 and expenditure projections were understated by approximately $1,137,000. While this work is not yet finalized, the current projected variance is nearing $2 million.

The district is now focused on two critical priorities: addressing the current fiscal year and building a responsible, balanced Fiscal Year 2027 budget (July 1, 2026 – June 30, 2027). This work is essential to ensure we can continue providing high-quality educational opportunities for our students while also rebuilding the financial stability of the district.

Guided by transparency, collaboration, and long-term financial sustainability, I am committed to providing regular updates as we move through this process in order to rebuild trust and maintain pride.

Thank you for your continued dedication to our students and for your patience as we navigate this challenging work together.

Carrie McDonald
Acting Superintendent
Hibbing Public Schools