The Mankato Area Public Schools Board unanimously accepted the district’s Audit Report on December 15th.

During the discussion, I asked several clarifying questions related to per-student costs for administration, direct support, and special education. As shown on pages 16–18 of the audit report (below), district and school administrative support totals $1,040 per student, regular instruction is $6,542 per student, and special education is $3,579 per student. I wanted to confirm that these figures represent costs averaged across all students, not just those receiving special education services, which the auditor confirmed.

For those interested in school-level per-student costs, I recommend the Edunomics platform, spending vs outcome, which allows users to explore spending patterns across schools and compare districts.

I also shared calculations related to debt service per student. In 2021, debt service was $1,785,247 divided by 8,521 students, or approximately $209 per student. By 2025, debt service increased to $2,879,680 divided by 7,890 students, or approximately $365 per student. The auditor noted that the state does track student-to-debt ratios and indicated this information could be added to future reports.

Additionally, I asked for clarification regarding the district’s unassigned fund balance, which currently totals $17,342,913. This reserve is being maintained due to uncertainty around future state and federal funding, which the auditor confirmed. Board policy 723 states that the district will attempt to maintain a minimum reserve equal to one month (8%) of operating expenditures, we are currently at about 14%. I asked how these funds could be used if future conditions improve, and it was explained they would be directed toward the general fund and classroom support.

Director Baker added that a more optimistic funding outlook is unlikely in the near term, and that growing the district’s reserves has been both necessary and intentional. I agree with that assessment and appreciate the work of Director Baker and staff who have strengthen the district’s financial position by increasing reserves.

Thanks

Beth Hanke

507.351.3367 – cell, you can text as well.

Addition notes:

The district could possibly continue losing students as birth rates decline, and this school year the district also passed a Long-Term Facilities Maintenance (LTFM) bond to repair roofs and replace aging HVAC systems. As we continue approving projects already authorized through the $105 million voter-approved bond and the board-approved LTFM bond, I believe it is increasingly important to closely track our student-to-debt ratio.

With a steadily declining student population, staffing levels can be adjusted over time, but debt obligations—and the interest attached to them—are far more difficult to reduce. Monitoring how debt is spread across a shrinking enrollment base is essential for long-term financial planning and transparency.

I ask for your support in advocating to have the student-to-debt ratio included as a standard metric in our annual audit moving forward.

Helpful Refrences:

The 25-26 Mankato Area School District Budget Book: file:///C:/Users/manka/Downloads/FY26PrelimBudgetBook.pdf

The Audit Presentation: https://destinyhosted.com/manSDdocs/2025/SBRM/20251215_330/2661%5FAudit%5FPresentation.pdf

Previous Post about the Audit Report: https://elizabethhanke.com/2025/12/15/mankato-school-audit-report/