NICOLLET – Nicollet Public Schools (NPS) lost nearly $200,000 in special education funding due to a data collection error.

Last month, the Nicollet Public School (NPS) Board learned about the potential shortfall to special education. Initially the board was told the error resulted in $325,000 in lost funding. On Wednesday Todd Netzke, owner of School Management Services (SMS), and District Business Manager Jim Freihammer clarified the information presented last month was incorrect. The actual short fall was $195,627.60.

SMS has investigated the error and found that NPS faced a reduction in state special education funding for fiscal year 2024 and fiscal year 2025 estimated to be in the amounts of $6,064.98 and $189,562.62 respectively due to incorrect coding of contracted Minnesota Valley Education District (MVED) staff expenditures in 2024. The original error and not catching the error both involved SMS staff.

The appeal to the Minnesota Department of Education (MDE) to address this error was denied. As a result, SMS has submitted a claim to their Errors & Omissions insurer and is collaborating with the Minnesota Department of Education Special Education Finance Team to assess the financial implications of the coding mistake.

“We have been in this business for 20 years, have 70 customers statewide, and this is the first time this has happened. We are changing things so we have more checks and balances in place to prevent this from happening again,” Netzke said.

“So, it’s never happened before, but trust is like fine China. When it is broken, you can mend it, but it is never the same. It’s really hard to trust again when someone has made a big mistake like this,” said Board Member Abbi Carleton.

“A specialist in special education funding at the Department of Education calculated the error and found the amount to be $195,627.60. Our goal is to make the district whole again with the proper funding,” said Netzke.

Freihammer continued by explaining that enrollment has been down the past seven years, and with the budget in deficit, he recommends that Superintendent Robin Courrier create a plan to cut $500,000 from the 2025-2026 budget. The Board approved the recommendation.

“I have already started the plan and will present it at the board meeting in May. The Enrollment Task Force is doing a fantastic job to encourage enrollment. I agree with the $500,000 cut without doing any damage to our programs and to our students,” said Courrier.

“We need to start somewhere. We owe it to our kids and our community. We are open to opportunities to attract more students to the district,” said Chair Adam Erickson.

District Survey

Rob Brown from NEXUS and Bill Foster from School Perceptions presented the survey they have prepared to mail to everyone in the district. The survey is about the ten-year plan for the district with a possible levy of $300,000 each year for five years.

They hope to have the surveys in district mailboxes during the week of May 5. Staff will review it before it is mailed. The deadline for completing the survey is May 23. A report on the results of the survey will be brought to the school board at their June meeting.

Superintendent’s Report

The hearing regarding the case of a former Nicollet office employee Lisa Cheryl Bode was resolved on April 1. Bode pleaded guilty to embezzling funds from the district. A criminal complain alleged Bode used her position as a former payroll and human resource clerk to overpay herself by more than $32,000 over two-years from 2021 to 2023. The embezzlement charges were dismissed as part of the plea deal. Bode has agreed to pay restitution in the amount of $17,962.13 over a three-year period.

MCA testing has begun for students. The tests are taken by students beginning in their third grade year and ending after their Junior year.

The NPS Class of 2025 valedictorian is Leah Bode, and salutatorian is Cason Forbrook.

Courrier announced that Sue Schaub has resigned from her position at NPS.

Courrier has been working with the Strategic Planning Committee. The Board will have a Strategic Planning meeting with the committee and MSBA Gail Gilman on April 23.

Courrier recommended to continue the practice of non-renewing all probationary teachers when in a budget deficit year. “This practice allows flexibility when looking at student enrollment, program planning, and budget availability to provide an optimum learning environment for our students while managing the budget deficit,” said Courrier.

The Choose to be Nice Recognition Breakfast was held on March 7th to celebrate nine students who were chosen by their peers as students who model the behaviors of Responsibility. There are: Ryan Benson, Kindergarten; Scarlett Patterson and Larkin Allerson, 1st grade; Eddie Asmus, 2nd grade; Isabelle Gieseke, 3rd grade; Lilly Kuehn and Kaylee Emich, 4th grade; Henry Asmus, 5th grade; and Asiana Gieseke, 6th grade.