This vote was taken on February 2, 2026. I waited a couple of weeks before posting because I was told that my vote was perceived as unfair to one contract group, and I wanted to take time to reflect thoughtfully on that concern.

I did not ask anyone to do something I would not be willing to do myself. As a business owner, there are times when my business does not make money, and during those periods I pay myself less until conditions improve. With that perspective, I do not believe my vote was unfair, nor was it intended to single out or target any group.

You can view the Full Video at 1:09 .I ’ve highlighted what I believe are the most important parts of the discussion, but I encourage anyone interested to watch the full clip for complete context.

Mr. Lustig- The 25-27 Master Agreement with Association of Prinicpals. This represent a 2 year package of 8.74% and the details have been shared with the board.

Myself-

I want to begin by saying that I value our principals and their leadership. Many go above and beyond for their schools and communities. My concern is not with individual performance or effort, but with the long-term structural sustainability of our district.

Our long-range financial forecast shows expenditures growing faster than revenues, leading to declining reserves and emerging structural gaps in the outer years. At the same time, the state budget forecast shows a near term surplus followed by a projected deficit in roughly that same future window. When district and state deficit cycles begin to overlap, financial risk increases; not because anyone has done anything wrong, but because financial flexibility narrows quickly.

In that environment, even reasonable compensation increases can become problematic if expenditure growth continues to outpace revenue growth. That is why every settlement must be evaluated not only for short term affordability, but for its impact on long-term fund balance stability.

One of our fastest-growing cost drivers is benefits. Each increase in benefit contribution commitments compounds long term expenditure pressure. If state funding growth slows, as often occurs during structural deficit periods, multiyear compensation commitments become increasingly difficult to sustain without drawing down reserves or making midcycle reductions.

Adding to this pressure are partially funded or underfunded state mandates that increase district costs without providing full, ongoing revenue support. Examples include the Universal Free School Meals program, the Read Act, expanded special education compliance and reporting requirements, paid leave mandates, and additional licensure, training, and curriculum implementation requirements. While each of these initiatives may be well-intended, together they place real and compounding strain on district budgets. These costs are largely fixed, continue year over year, and reduce the dollars available for staff compensation and classroom supports.

Given these realities, I believe we should either slow compensation growth to better align with revenue projections, or identify clear offsetting cost controls before approving multi-year increases. My goal is not to undercut leadership or staff, but to ensure that today’s commitments remain sustainable so we do not have to make deeper cuts later.

Superintendent Peterson: Ms. Hanke, would you take a question?

Ms. Hanke: Yes.

Superintendent Peterson: You voted unanimously in favor of the teachers’ agreement. What changed between that vote and the vote on the principals’ contract?

Ms. Hanke: While the administration contracts represent a smaller total dollar amount, they carry higher per-employee costs. In addition, reviewing our five-year budget outlook during the MSBA session further shaped my perspective on future funding pressures.

Mr. Baker also provided additional context and points, which can be viewed in the full clip.

I was the sole “no” vote on the principals’ contract. These decisions are difficult, and each board member brings a different background and perspective to the table. I voted in a way that reflects how I would approach decisions in my own business.

Full video: https://mankatoaps.new.swagit.com/videos/373794

This section starts at 1:09

Thanks,

Beth Hanke