Current Budget & Forecast
Budget Projections
Our costs are increasing faster than our revenue is growing. This is mainly because prices are going up (inflation) and student enrollment (revenue) has slowed, mostly due to low birth rates. Lower student enrollment = less state funding.
Do Other Districts Have Funding Issues?
Yes. Like many school districts across our metropolitan area, we are having to manage rising costs, unfunded or underfunded state mandates and declining enrollment that is largely due to low birth rates in our state, all of which are contributing to necessary budget cuts.
Multi-Year Budget Reductions
Monitoring our district’s budget remains an ongoing priority. Since 2019–20, we have used approximately $5 million from our fund balance (our district’s “savings account”) to present balanced budgets to the School Board.
For the 2024–25 school year, we:
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Reduced the budget by approximately $4 million
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Used additional fund balance to offset rising costs
Following the 2024 referendum request, the School Board approved $4.1 million in reductions for 2025–26, including:
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Fewer elective options in grades 6–12
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Staffing adjustments
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Relocating MNCAPS to Prior Lake High School
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Closing the Twin Oaks pool
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Eliminating Laker Online
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Reducing technology expenditures
2026–27 and Beyond
The Board approved a site consolidation plan for 2026–27, which includes:
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Closing WestWood as a neighborhood school to better align resources
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Selling the District Services Center
Even with these actions, an additional $4.1 million in reductions still need to be identified.
Without new revenue, budget reductions will continue and could eventually result in Statutory Operating Debt. While these decisions have a broad impact on students, staff, and families, we remain committed to transparency and ongoing engagement with stakeholders throughout this process.