SLP Budget and Finance

We are committed to providing a rigorous and equitable education for every student. As we navigate projected budget constraints for FY26, including a $2 million reduction, we invite you to explore the context behind these challenges. Learn more through our FAQs, detailed insights into revenues and expenses, and key considerations shaping our path forward.

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School Finance Explained

Minnesota's school finance system decides how schools get money to operate and provide education to students. It involves a mix of funding sources and rules that determine how the money can be spent.

General Fund money comes from:

State Funding
Local Property Taxes
Federal Funding
Other Revenue
- Grants, Extracurricular Fees

St. Louis Park Public Schools receives 67% of its funding from the state, 29% from property taxes, 3% from federal funding, and 1% from local interest, fees, and gifts.

The funds received from these sources are spent on staff salaries and benefits, building facilities, and programs and services for students.

77% is spent on staff salaries and benefits
16% is spent on purchased services
7% is spent on supplies and other miscellaneous purchases

Review Recent Budget Decisions

Historical Context

Public schools across Minnesota face increasing financial challenges, and our district is no exception. A combination of systemic funding issues, inflationary pressures and declining enrollment has created a growing gap between revenue and expenses.

State and federal funding for public schools has not kept pace with inflation, reducing the district's purchasing power and limiting resources for critical needs. Declining enrollment has further impacted revenue, as funding is often tied to student numbers.

While we are seeing signs of stabilization, the financial effects of lower enrollment persist.

Costs Outpacing Revenue: Expenditures in key areas continue to grow faster than available revenue, creating a structural imbalance.

Staffing Adjustments: While staff reductions have been made to align with declining enrollment, these changes have not kept pace with the rate of decline, further straining the budget.

Monitoring Large Cost Drivers: We are closely tracking significant expenses like transportation and substitute teacher costs, which remain critical yet challenging areas to manage.

Budget Timeline

Data Gathering (October-December 2024): In 2024, we collected input from our community and stakeholders to identify priorities and values that guide our financial decisions. This phase included reviewing revenues, expenses, and operational challenges.
Preparation & Budget Parameters (January-March 2025): Using the data collected, we are establishing budget parameters that align with our district's mission and community priorities.
Final Budget Parameter Approval (April 2025): The proposed budget will be reviewed and finalized by the School Board.
Final Budget Approval: The School Board will approve the budget at the regular business meeting on June 14, 2025

Frequently Asked Questions

What is the projected budget reduction for SLP?

What are SLP's expenditures?

Expenditures

2023-2024 Preliminary (estimated)
- $79,938,060
2024-2025 Budget
- $81,816,650
2025-2026 Estimated
- $85,498,399

Since FY2020, total General Fund expenditures have increased by $10 million (13.03%); which is an average increase of 2.68% per year.

We can anticipate expenditures in FY2026 to increase by at least another $2-$6 million without budget reductions.

What happened to the additional funds from the state in 2024?

St. Louis Park Public Schools is grateful that the Minnesota Legislature increased its funding formula for schools. In 2023-2024, it provided a 4% increase and this year we anticipate 2.5%.

This additional funding required schools to implement new mandates, most of which are costly to implement and maintain, including summer unemployment insurance, the READ Act, and Earned Safe and Sick Leave. While it is true that some of these legislative changes may appear to have minimal direct impact, there are several factors that contribute to increased costs.

Earned Safe and Sick Leave (ESSL) – While the new law did not change existing sick time provisions for many employees covered under contract agreements, it did impact some of our employee groups. It also required the expansion of eligibility and tracking for certain groups of employees who were not previously covered, such as temporary or part-time staff.

READ Act vs. Read Well by Third Grade – The READ Act introduced more specific requirements around literacy instruction, interventions, and assessments, along with mandated professional development for educators. Our district has had to allocate funds for:

Additional literacy training and professional development for staff
New curriculum materials aligned with the legislation
Expanded screening and progress monitoring tools
Potential staffing adjustments to meet compliance standards

Summer Unemployment Insurance – This mandate has been one of the most significant cost drivers. Previously, many school-year-only employees (such as paraprofessionals and certain other staff) were not eligible for unemployment benefits during the summer months. The new requirement extends eligibility, resulting in substantial increased costs to the district. The state has allocated additional aid to cover the costs for summer unemployment, which has been sufficient for the first two summers of implementation. Our understanding is that this funding is not guaranteed to continue into future years.

New mandates have the impact of adding administrative oversight and tracking costs to district staff. Additional small state reimbursements for costs require more accounting, auditing and compliance support for these same district staff members. These costs are not often considered when mandates appear to be otherwise funded.

What is SLP's Fund Balance?

How has SLP attempted to balance the budget before?

St. Louis Park Public Schools has implemented various strategies to address budget challenges and maintain financial stability, including:

Drawing from the district's fund balance to cover shortfalls while minimizing the impact on programs and services.
Allocating restricted funds toward eligible expenses to reduce pressure on the general budget.
Streamlining transportation services to achieve cost savings while maintaining essential access for students.
Adjusting staffing levels in non-instructional roles to align with financial constraints.
Implementing an equitable cost-cutting approach to reduce expenditures district-wide without disproportionately affecting any single area.

While these strategies have been effective in past budget cycles, the district continues to face budget constraints.

How can I learn more about SLP's budget?

Budget Presentations and Resources

Director of Business Services Patricia Magnuson has provided public presentation to the St. Louis Park School Board throughout 2024-2025. These presentation provides context into the budget deficit, a look at recent history, enrollment projections, and the impact of inflation on public school funding.

District