Twin Cities school districts face hundreds of millions in projected budget deficits

Twin Cities school districts face hundreds of millions in projected budget deficits

Twin Cities school districts face hundreds of millions in projected budget deficits

A new survey by Association Metropolitan School Districts (AMSD) shows school districts around the Twin Cities and in Duluth, St. Cloud, Mankato and Rochester are projecting a combined $317 million budget shortfall in the coming year.

The self-reported survey comes out every year, but organizations representing teachers are now questioning the timing of this report amid contract negotiations.

Scott Croonquist, executive director of AMSD, says historic inflation, staffing shortages and depleting pandemic funds are all factors in the looming fiscal cliff for school districts. Croonquist says it’s the largest shortfall they’ve seen in at least five years.

The report says St. Paul Public Schools expects a budget shortfall of $107.5 million; Minneapolis Public Schools projects a $90 million deficit; and the Anoka-Hennepin Public School District reports $24 million in projected debt.

Denise Specht with Education Minnesota wishes the report would show how much money districts have in the bank and how they plan on using it.

“I hope this report isn’t about shaming educators for asking more,” said Specht.

“It’s absolutely not a negotiating tactic,” Croonquist said. “They have to balance their budget and live within the existing resources that they have.”

While the report did not disclose exactly how districts came up with the projected numbers, Greta Callahan with Minneapolis Federations of Teachers is calling the report misleading.

“Five out of the last six years, Minneapolis Public Schools have actually been in a surplus,” Callahan said. “But they’re also not reporting the new legislative dollars that we all won. There’s $32 million coming in this year that were unexpected.”

Croonquist told 5 EYEWITNESS NEWS the survey asks districts to write the difference between their projected revenue and projected expenditures. He says not all districts will use their entire reserves on shortfalls.

Some districts have had to consider cutting programs and laying off staff. To hopefully mitigate those cuts, Croonquist says they need more money.

“We’re just hoping the Legislature could maybe help us with some supplemental funding this session,” he said.