Minneapolis Public Schools (MPS) officials believe hundreds of full-time positions will need to be eliminated in order to make up for the $75 million budget shortfall that will occur in the following school year as a result of a combination of dropping enrollment and expiring federal pandemic monies.
Members of the MPS board adopted the district-wide budget for the 2025–2026 academic year on June 10, 2025.
Before a tech levy authorized by local voters last November gave the district an additional $20 million to help balance its budget, the district had a $95.1 million operating deficit.
The budget is expected to “significantly reduce structural gaps and reliance on one-time funds” which “prioritizes students and continues student-facing programs and services.”
The district’s budget does not call for the “elimination of direct student programs or services.”
MPS was estimated to have an operating budget of $110 million during the 2024–25 budgeting process.
Budget reduction for MPS
MPS board members approved their budget on the same day that Minnesota legislature approved a statewide budget of $66 billion, which would be supplemented by additional funds in the coming years.
The district’s predicament, however, becomes evident when comparing MPS budgets from year to year: costs are still rising but student enrollment, which is the main source of income, is still falling.
Staffing costs for the entire district will rise by $7.1 million, or 5.5%, in the most recent budget. Additionally, there will be a $7.5 million, or 7.6%, increase in special education services.
Additionally, there will be a $1 million, or 3.3%, cut to English learner services. Teachers protested potential changes to special education services in March.
The district claims that it removed as much as possible from the “non-school facing portion of department allocations to minimize the impact on students” in an attempt to save costs.
According to the district, positions based at the Davis Center will be cut by 13.84%, with the biggest cuts occurring in non-represented positions (16.67%), the Minneapolis Association of Confidential Administrators (12.32%), and the Association of Minneapolis School District Professionals (15.45%).
The district will continue to employ 5,634 full-time equivalent staff notwithstanding the reductions.
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According to district officials, shutting or consolidating school facilities may be an option for future budgetary considerations.
Currently, MPS manages 73 structures on 436 acres of land, 15 of which are over a century old.
The district will once more start over in December to determine where its revenue and expenses line up and what has to be changed for the 2026–2027 academic year.
Leaders of St. Paul Public School (SPPS), located across the Mississippi River, stated that in order to make up the $51.1 million shortfall in their own budget for 2025–2026, they intend to draw from reserves, make some cuts, and consider holding a referendum.
