ELY- The Ely School Board approved a 2024-25 budget on Monday that includes a $133,457 deficit, marking a significant improvement from earlier projections of a half million-dollar budget shortfall.
Increasing salaries, which added an estimated $375,000 to the district’s payroll, plus other inflationary increases, combined with a drop in revenues due to enrollment declines as well as the expiration of federal COVID relief funds, accounted for the district’s budget gap.
The district has just over one million dollars in its unassigned general fund, so it can backfill this year’s deficit from reserves.
The ISD 696 administration spent most of April looking for ways to increase revenues and cut costs without affecting the district’s students. The board acted on the administration’s recommendations earlier, whittling the shortfall down to around $275,000 at the time.
The budget could not be finalized until the school received all of its quotes for next year and finalized all of its negotiations with contractors and unionized bargaining units. The last of these were approved on Monday, at the same meeting that the board approved the budget.
The 2024-25 budget approved this week shows projected revenues of $9.765 million, and projected expenses of $9.898 million, resulting in a shortfall of $133,457. The projected unassigned general fund balance at the end of next school year will be $1.029 million, or 12.4 percent of the district’s operating expenses.

In other business, the school board:
• Approved the 2024-2026 Master Principals’ Agreement Between ISD 696 and the Ely Principal’s Association.
• Approved the 2024-2026 Master Agreement between ISD 696 and the Ely Public School Confidential/Supervisory Employees Association.
• Approved the proposal and rates from IEA Inc. for environmental, health, and safety management services from July 1, 2024, through June 30, 2027.
• Approved the reimbursement of $1,657 for Ely Track Club participation fees.
• Approved the payment of $1,652 for 2024-25 Minnesota Rural Education Association dues.
• Approved the payment of $6,995 for 2024-25 Minnesota School Board Association dues.
• Approved the third reading and adoption of revised Minnesota School Board Association policies 402 on disability nondiscrimination, 406 on public and private personnel data, and 413 on harassment and violence.