For the first time in several years, the Ely School District is projecting a balanced budget.
Earlier this week, school board members adopted a 2026-27 budget that anticipates slightly more revenues than expenditures.
For six straight years, the district has spent more than it has taken in, depleting school reserves, but the budget adopted Monday calls for $8,372,425 in revenues against $8,306,755 in expenses.
The budget was the result of months of work including some sweeping changes for the new school year, including the move to a four-day school week that’s expected to save about $195,000.
The budget also is aided by a $213,480 donation from the Ely Educational Foundation and several personnel moves including the elimination of the K-12 assistant principal position.
Some late help from state lawmakers is also factored in, including $92,000 from the Iron Range Resources and Rehabilitation Board and $30,000 in one-time seasonal recreational tax base replacement aid.
The budget also includes several assumptions, among them another sizable drop in student enrollment given projections that only 20 kindergarten students will be enrolled next fall.
Declining student enrollment, rising expenditures and a revenue drain created by high school students opting to take courses at Vermilion Community College have created a triple-whammy of sorts when it comes to finances for the district.
The post secondary enrollment options impact might only get worse in 2026-27, given projections that show among 85 high school juniors and seniors, 54 will participate in the program, totaling 63.5 percent.
Other budget-related moves were on Monday’s agenda, including formal board action to place assistant principal Jeff Carey on unrequested leave, while also reassigning him to a special education teaching post for 2026-27.
The full-time media specialist post held by Madeline Olson was reduced from full time to 0.8 full-time equivalent, while teacher Molly Olson was also placed on unrequested leave and will be reassigned to a 0.6 FTE math position and 0.4 FTE teacher on special assignment.
The board also accepted four donations from the Ely Educational Foundation Monday, all but one related to technology.
The largest was for $180,495 for new Chromebooks, with another $62,999 for smartboards and stands, $18,050 for Chromebook licensing, and $1,499 for a band room receiver.
“We are so fortunate to have the Ely Educational Foundation,” said board member Tony Colarich. “Without them and their goodwill, we would be in worse shape financially than we are now.”
Superintendent Anne Oelke noted that the district was replacing Chromebooks purchased at the start of the Covid-19 pandemic, and that the contribution came as a result of a donation to the EEF.
“What they had was a large donation that had particular stipulations,” said Oelke. “It could only be used for technology.”
In other business, the board:
• Accepted the resignation of dance team coach Desirae Cram. The position will be posted.
• Approved a resolution authorizing membership in the Minnesota State High School League.
• Ratified a new contract with the principal’s association, which calls for salary of $107,662 in 2026-27 (no increase from 2025-26) and $108,469 in 2027-28 for the K-12 principal position, as well as a $500 stipend. The contract also includes health insurance and other benefits.
• Approved 2026-27 insurance premiums of $191,305 to Marsh McLennan Agency.
• Approved quotes submitted by Lake Gas Company for propane for 2026-27.
• Authorized dues payments of $7,655 to the Minnesota School Board Association.
• Approved the quote submitted by Phil Hegfors and Son Construction for district snow plowing and snow removal needs in 2026-27. The company was the only one to offer a bid.
• Approved a resolution establishing the filing dates for this year’s school board election. A two-week filing period begins July 14.
• Received an enrollment report showing that the district finished the 2025-26 school year with 482 students enrolled in grades K-12. That’s down from 484 at the start of the school year.
