Byron Schools’ suit against finance company on expedited court track

Byron Public Schools and its former financial management company were back in court last week, with the case put on an expedited litigation track.
The district alleges that School Management Services LLC (SMS) incorrectly projected expenditures, including staff salaries and benefits, resulting in a budget shortfall.
In the original complaint filed in August, the district alleged that School Management Services presented Byron with budget calculations that projected a surplus for the 2023-2024 academic year. Those calculations, the complaint says, were false and incorrect, and SMS failed to exercise reasonable care when it utilized incorrect methods and computation models to complete Byron’s budget projection.
The district relied on the calculated projections provided by the company when it made investments and contract negotiation decisions.
As a result of those miscalculations, the complaint alleges, the district has incurred damages believed to exceed $50,000.
The company is facing one count of Breach of Contract and a second count of Negligent Misrepresentation.
In the past two years, the district has made budget cuts totaling $3 million and asked voters to approve a levy referendum, which was approved in the Nov. 4, 2025, election.
The case is being heard in Olmsted County District Court. It has not been determined when the two sides will meet again in court.