The St. Paul school board has approved the budget for the 2025 fiscal year.

On Tuesday night, the St. Paul Public Schools Board of Education approved the budget on a 6-1 vote.

The budget includes $707.5 million in general fund expenses, which is a decrease of $114.6 million from the fiscal year 2024. The district states the decrease is necessary to address an originally projected shortfall of $150.3 million.

The majority of the shortfall is due to the expiration of the American Rescue Plan federal funding in 2024, according to the district. Other factors include the state funding formula, employee wages and benefits, inflation and student enrollment.

The 2025 budget was approved with a remaining spending deficit of about $37 million.