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A Clean Audit Amid Critical Financial Challenges
Each year, Prior Lake-Savage Area Schools (PLSAS) completes an independent financial audit to ensure our finances are managed responsibly, transparently, and in full compliance with state and federal requirements. I’m proud to share that once again, PLSAS received a clean audit opinion—the highest rating possible. This means our financial statements were found to be accurate and complete, with no findings or concerns noted by auditors.
Our auditors once again recognized PLSAS for strong internal controls, clear reporting, and sound fiscal management—affirming that we are using taxpayer dollars wisely and maintaining high standards of accountability.
While this is something we can all be proud of, the audit also underscores a challenging truth: our district is at a critical financial point that will require continued reductions unless our revenue picture changes. Our district’s financial pressures stem from revenue—not spending. The state does not provide enough funding to cover the basic educational needs that are now required in today’s schools.
The audit report also noted that PLSAS’ educational cost per student is nearly $2,900 lower than the average for school districts in the seven-county metro area as of FY24. While FY25 data for the metro average is not yet available, PLSAS’ per-student cost is expected to remain similarly below average. This difference amounts to approximately $25 million less in annual funding in FY24 compared to peer districts—primarily because PLSAS has one of the lowest voter-approved operating levies in the metro.
PLSAS’ administration and district support expenditures were $997 per student, while comparable districts spend more than $1,300 per student.
We continue to stretch every dollar, but state funding hasn’t kept pace with the rising costs of providing the tools and services students rely on every day. These are not “extras” — they’re essentials. That includes curriculum required by state law, the phones and secure networks that keep schools running, and the technology that ensures every student can learn. Since most curriculum is now digital, iPads have replaced traditional textbooks, giving all students equal access to the materials they need to succeed.
Our audits, awards, and bond ratings consistently affirm that we are responsible stewards of public funds. Yet every year, costs for essential services continue to rise while state funding falls behind. As a result, we’ve had to make increasingly difficult choices:
- 2024–25: Reduced the budget by approximately $4 million and used fund balance to cover increased costs.
- 2025–26: Reductions totaled $4.1 million.
- 2026–27: We are closing a neighborhood school, changing K–5 attendance boundaries, and selling the District Services Center - while still needing to cut millions more.
These cuts are not sustainable long term. The district’s fund balance—our savings account—is projected to fall below the School Board’s policy to strive to maintain a minimum total unassigned general fund balance of at least eight 8% of the annual budget. Continuing to draw down reserves will only deepen future financial challenges.
PLSAS operates efficiently, ensuring that the vast majority of our budget supports classrooms, teachers, and direct student services. But efficiency alone can’t make up for inadequate funding. As we move forward, we remain guided by our Strategic Plan to optimize our resources and prioritize efficient and effective use of fiscal, human, and capital resources through excellence in governance, administration, and staff.
To continue providing the quality education our community expects and our students deserve, we must work together to find solutions that address this revenue problem head-on.
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