(The Center Square) – The Minneapolis Public School Board approved a $755 million budget for the 2023-24 school year.
The district manages 96 public schools serving 32,722 students.
The budget includes $29 million for intervention teams to fight learning loss, a half-full-time equivalent library media specialist in every school, and $1.5 million for services to advanced learners.
The budget shows a deficit of $1.4 million resulting from $92 million in federal COVID-19 assistance dollars and an initial increase in state funding of $31.7 million from the recent legislative session.
Over half of all federal fund revenue comes in the form of state aid, while about one-fifth of the general fund revenue comes from property taxes. Less than 20% of revenue comes from federal sources, inclusive of COVID-19 funds.
Department allocation levels remained largely the same as the prior year, with a general 2.5% adjustment for increased staffing costs. The budget has a $2.9 million immediate investment from state lawmakers for safety and security; $500,000 for student mental health support, $1.1 million for cybersecurity infrastructure and data protection, and $50,000 for human resources contracted support.
“We are proposing these investments in these key areas right away so work can begin over the summer in order to have support in place before the start of the school year,” interim Superintendent Rochelle Cox wrote in a letter to the school board. “We understand that a deeper analysis of how the board will want to utilize the entirety of the additional legislative funds will take time, but these areas require urgent attention and they align to the board’s proposed priorities for next year.”
Board Chairwoman Sharon El Amin said the district faces hard financial decisions over the next few years.
“As a board we place priority on outlining the priorities to help align the district yearly budget as we move forward,” she said.
With the COVID-19 dollars facing a September 2024 deadline, Minneapolis Public Schools must move forward without them and/or eliminate expenses to match revenues for the 2024-25 budget. However, the district expects to receive an additional $20 million in state funding, which reduces an expected deficit of about $97 million to around $77 million.
Board Treasurer Abdul Abdi expressed his appreciation for the return to prepandemic “normalcy.”
For the first time in recent history, the district received an elevated financial outlook – moving from stable to positive – according to Fitch, an international credit ratings company.
This upgraded outlook indicates Fitch’s confidence in the school district’s ability to manage its financial difficulties and gain control over its cost structure. The district will work alongside the board and the community to address and overcome the district’s financial challenges.
