Wabasha-Kellogg School Board Approves Facility Levy for Mold Remediation

The Wabasha-Kellogg School Board held its regular meeting in May, where one of the most significant topics was the upcoming tax levy set for the 2027 fiscal year. This increase in the tax levy is intended to help finance necessary mold remediation.
Superintendent Nels Onstad explained that the school is making budget reductions of $350,000 to $400,000 this year, primarily through personnel changes. Positions left vacant by retiring teachers will not be filled, and some staff members are either taking leaves of absence or choosing to move to other districts. According to Onstad, these personnel-level reductions have been communicated to the teaching staff, and they are aware that taking a leave of absence is an option. The district has been closely monitoring its budget in light of declining enrollment, a trend that has persisted for several years and continues to impact student numbers. This situation is not unique to Wabasha-Kellogg, as similar statewide budget cuts are also taking place. Business Manager Kathy Miller regularly reviews the budget and discusses it with the school board during meetings.
The district’s Fund Balance has provided an additional resource to help cover mold remediation costs. Onstad highlighted that maintaining this buffer in the Fund Balance has allowed the school to avoid significant layoffs. The board views the tax levy as a necessary measure to ensure the district’s overall financial stability. Onstad noted that the district is drawing from four different funding areas to secure enough resources for mold remediation. The levy itself is a Facility Maintenance Bond supported by the State, which allows the School Board to approve the tax increase without requiring a public vote. Under Minnesota law, “Indoor Air Quality” falls under the jurisdiction of the School Board, enabling them to act on and approve the levy.
After discussions throughout the year, the School Board approved the levy, considering all available resources to ensure the district’s financial health is not jeopardized. For a home valued at approximately $300,000, this levy will result in a monthly tax increase of about $3. Onstad stated, “it’s not our goal to raise the taxes. We are keeping the community in mind as well as the financial security of the school.” He emphasized the importance of fiscal responsibility and assured that the district is not relying solely on the levy to address mold remediation costs. Instead, the district is taking a cautious approach and “taking out of many baskets” to manage these expenses.
In addition to the levy, the district will also utilize bond interest funds to help cover accrued costs. Onstad mentioned that neighboring districts’ tax levies have been reviewed for comparison, ensuring Wabasha-Kellogg remains consistent with other districts’ practices.
As the school year draws to a close, Onstad commended the 2026 senior class for their outstanding achievements, noting how quickly the year has passed. Wabasha-Kellogg Elementary Principal Chad Murtha was recognized as a 2025–2026 Minnesota School of Excellence by the Minnesota Elementary School Principals’ Association, an honor that highlights the school’s dedication to early childhood education, mental health support, staff commitment, and community involvement.
W-K students have engaged in a variety of activities, including plant sales, field trips, blood drives, spirit days, dances, book fairs, concerts, field day, science experiments, and community service initiatives. The high school’s production of Newsies received multiple accolades from Hennepin Arts Spotlight Education.
The district has kept its focus on strong academic goals, working to improve MCA scores, broaden learning opportunities, and sustain high post-secondary participation rates. Onstad also noted the district’s resilience and teamwork in overcoming construction and mold-related delays at the beginning of the school year, with staff, students, and activity programs quickly adapting and maintaining strong school spirit throughout the transition.
Recently, the district celebrated its Annual Staff Recognition Event, honoring employees for their years of service, recognizing retirements, and celebrating Teacher of the Year nominees, with Johna Nelson being named W-K’s 2026 Teacher of the Year.
Looking ahead, summer construction will begin on June 1. The elementary wing will receive final touches in classrooms, and both entryways will be replaced with more secure and modernized entries