2024-25 Financial Update
Like many school districts across Minnesota, the Minnetonka Public School District is grappling with budget constraints that necessitate reductions. Despite remarkable achievements by students and staff and strong community support, for the first time since 2007 Minnetonka Public Schools is forced to make substantial budget reductions to maintain financial stability over the coming years.
The District's financial challenges are a result of state funding not keeping pace with the costs of inflation and the increased cost of providing high-quality education. Since 2003, the General Education Revenue provided by the state has been funded below the inflation rate, causing a significant shortfall. Additionally, categorical funding received by Minnetonka Schools is far below the state average, as our District does not qualify for the majority of this funding. There has been little legislative support to increase the cap on the operating referendum to allow our District to approach voters about additional local funding. These financial realities have eliminated a crucial revenue stream that previously maintained budget stability. For nearly 20 years, Minnetonka has covered this gap through open enrollment. As enrollment has leveled off, the District now needs legislative help to cover this gap in funding.
To address these financial challenges, Minnetonka Schools has initiated several cost-saving measures. The District has already implemented administrative cuts at the district level and reduced non-classroom teacher staffing, eliminated lower enrollment courses, and consolidated smaller classes. Beginning in fall 2024, there will be additional reductions, with a focus on minimizing the impact on classroom instruction. District leadership will present additional cost-saving recommendations throughout the school year with final decisions being made in 2025.
The District understands that any reduction will have an impact on the student experience. We remain committed to maintaining a high-quality student experience and providing exceptional learning opportunities within these new financial constraints. District leadership will continue to advocate for increased funding from state legislators, aiming to restore some of the cuts made during this challenging period.
Letters to the Community From Superintendent David Law:
Fiscal Stewardship
We continually strive to provide responsible and prudent fiscal stewardship that best serves the community. Aggressive financial management on the part of the School Board and District Administration has saved taxpayers money and ensured that more than 85% of the District's annual operating budget is directed to the instructional program to maximize support for students.
Budget Updates From Executive Director of Finance and Operations Paul Bourgeois:
Help Minnetonka Schools Make a CASE for School Funding
Minnetonka's Community Action for Student Education (CASE) committee advocates at the Minnesota Legislature for full school funding. The goal of CASE is to encourage legislators to reinvest in public education at the state level and to understand how possible changes in current law can positively impact school funding and support students.
Frequently Asked Questions
Budget and Finance
Our finance professionals are dedicated to providing the most cost efficient and effective system possible to support and enhance the learning environment and the operations of Minnetonka Public School District, by providing quality services to students, parents, taxpayers and staff.
Minnetonka Public Schools has received a Certificate of Excellence in Financial Reporting each year since 1995.
Questions?
If you have any questions or comments about the District's financial situation, please email communications@minnetonkaschools.org.
