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 is an ongoing priority. Since 2019–20, we have used about $5 million from our fund balance, or “savings account,” to present balanced budgets to the School Board.
For 2024–25, we reduced the budget by about $4 million and used additional fund balance to offset rising costs. Following the recent referendum, the Board approved budget reductions for 2025–26 totaling $4.1 million, including fewer elective options in grades 6–12, staffing changes, relocating MNCAPS to PLHS, closing the Twin Oaks pool, eliminating Laker Online and reducing technology. The Board also approved a site consolidation plan for 2026–27, which includes closing WestWood as a neighborhood school, to optimize resources.
Without new revenue, reductions will continue and could eventually lead to Statutory Operating Debt. While these steps have a broad impact, we remain committed to transparency and engaging stakeholders throughout the process.