Our district is committed to providing a rigorous education for each of our students. This year, we are facing a challenge of at least a 2 million dollar deficit for the upcoming school year due to some budget pressures.
These cuts are not new to us, as significant reductions have been made over the years. Just a few years ago, for the 22-23 school year, we made nearly 5 million dollars in reductions and 3 million dollars again for the 23-24 school year. Over the years, we have looked at every dollar and option imaginable, and it included adjusting our practice for transportation, paraprofessionals and more. We know the significant impact this has, and it is important to understand that this financial shortfall will inevitably result in difficult cuts again next year.
State funding has not kept up with inflation: While the 2023 education bill provided a historic overall increase in funding, two critical funding streams continued to lose ground to inflation.
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Minnesota state’s per pupil funding formula: This formula determines the amount that schools are given from the state. The 2023 bill increased the formula by four percent for the school year 2023-24 and only two percent for 2024-25. That increase leaves the state’s per pupil funding formula $1,356 per student behind where it should be if it had kept pace with inflation.
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Local optional revenue: This funding stream, which can be used for school districts has been frozen since 2014. If it had kept pace with inflation, we would be receiving $182 more per student.
Birth rate decline: The birth rate in Minnesota has dropped, impacting most districts’ enrollment, including ours. In the last 15 years, enrollment remained steady and then began to decline, particularly following COVID. We are beginning to see a promising rebound in enrollment, but do not expect to return to pre-pandemic rates in the near future.
All of this leaves us at a significant disadvantage when it comes to meeting the current and future needs of our students. Had these two funding streams kept up with our costs, we would have an additional $6 million and would not even be engaging in conversations about making cuts. These funding streams currently provide about 41% of our general fund revenue budget.
We are looking at all of our options, and remain dedicated to our ongoing work. While we know that this is challenging, we encourage you to take action. Here are some steps you can take:
These are challenging times, but it is important to give you the information you need to help us make positive change. Thank you for your ongoing support and understanding. Together, we can advocate for the support needed to ensure our students have the resources they deserve.
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