Executive Summary
>>>>> Minneapolis Public Schools (MPS) faces a
significant fiscal challenge over the next five years. While short=term revenues remain stable,
long-term projections indicate a structural imbalance driven by expenditure growth
exceeding revenue trends.
>>>>> Without corrective action, the general fund
balance will decline from approximately $140 million in FY26 ti a negative
position by FY31.
>>>>> The five-year projection is a forecast for
planning purposes, based on our current fiscal reality. This is not to be confused with the actual
budget. While the following may affect
the district’s expenses and revenue, they are not affecting property taxes:
>>> Property taxes are adjusted when
there is a new levy or an increase
to an existing levy.
>>> Labor agreements are negotiated
between collective bargaining units
and the district.
Any obligation resulting from
these agreements function like expenses which the district then manages.
Drivers
of Fiscal Stress
>>>>> State revenues to drop to pre-2023 levels
>>>>> Birthrate declines
>>>>> Labor cost increases
>>>>> Inflation in purchased services and material
>>>>> Macroeconomic uncertainty
>>> Challenges affecting both the public
Fiscal
Projections: FY27 through FY31
Total
Total Surplus/ Ending Fund
Revenue
Expenditure
Deficit Balance
($M) ($M) ($M) ($M)
Fiscal
Year 2026 701.9 722.4 -20.5 140.3
Fiscal
Year 2027 713.8 744.1 -30.3
119.8
Fiscal
Year 2028 703.1 766.4 -63.3
89.5
Fiscal
Year 2029 700.9 789.4 -88.5 26.2
Fiscal
Year 2030 698.8 813.1 -114.5 -88.1
Fiscal
Year 2031 696.7 837.5 -140.7 -317.3
Fund
Balance Types
Restricted
Fund Balance
Definition
>>>>> This
is a portion of the district’s fund balance that have legally enforceable
constraints placed on their use that
either are externally imposed by resource
provider (grantors, donors, voters) or
imposed by law through legislation.
Examples of Restricted
Funds
Staff
development
Gifted
and Talented
Career
and Technical Education (CTE)
Student
activities
Safe
Schools Levy
Federal
grants
Non-Spendable
Fund Balance
Definition
>>>>> This
is a portion of the district’s fund balance that cannot be spent because the
assets are not in spendable form or are legally or contractually required to be
maintained intact.
Examples of Non-Spendable
Funds
Prepaid
items
Inventories
Long-term
receivables
Assigned
Fund Balance
Definition
>>>>> This
is a portion of the district’s fund balance that is designated for a specific
purpose. The intent to use the funds for
specific purposes can be established by the Minneapolis Public Schools Board of
Education or district administration.
Examples of Assigned
Funds
Referendum
(class size)
Funded
projects
Curriculum
adoption
Unassigned
Fund Balance
Definition
>>>>> This
is a portion of the district’s fund balance that is not designated for a
specific purpose. It is used as a financial
safety net and must meet district policy.
The district maintains a minimum fund
balance of eight percent (8%) of the annual operating budget. The district’s bond rating is tied to the
unassigned fund balance.
Examples of Unassigned
Funds
Government
Shutdown (State or Federal)
Strategic
Recommendations
>>>>> Protect fund balance--- avoid using reserves to balance FY27
>>>>> Implement multi-year cost containment
strategies
>>>>> Advocate for more state and federal funding
>>>>> Strengthen transparency through public
engagement
FY2027
Budget Development Timeline
>>>>> September 2025: Levy certification and forecast presentation
>>>>> October 2025: Finance
Committee five-year forecast review
>>>>> December 2025: Truth-in-Taxation hearing and final levy
adoption
>>>>> December through January 2025: Community Area Meetings
>>>>> February 2026: School/Department allocations and Budget
Tie-Out (BTO) system open
>>>>> April through June 2026: Final budget approval and publication
FY2027
Budget Timeline
>>>>> December 2025: Hold budget area meetings with community
>>>>> January 2026: Continue
to hold budget area meetings with community
Close
the budget gap
>>>>> February 2026: Send budgets to schools and departments
>>>>> March 2026:
Complete Budget Tie-Out (BTO)
>>>>> April 2026:
Present budget at the Finance Committee meeting
>>>>> May 2026:
Present the budget to the Minneapolis Public Schools Board of Education
for first
reading of
the budget
>>>>> June 2026:
Minneapolis Public Schools Board of Education adoption of the budget
Community
Engagement Meetings
Minneapolis
Public Schools will hosr community area meetings focused on budget and school
transformation from 6:30 Until 8:00 PM
>>>>> 3 December >>> North High School
>>>>> 4 December >>> Washburn High School
>>>>> 5 December >>> South High School
>>>>> 10 December
>>> Roosevelt
High School
>>>>> 11 December
>>> North
High School
>>>>> 16 December
>>> Southwest
High School
>>>>> 14 January 2026 >>> Camden High School
>>>>> 15 January 2026 >>> Davis Center (all-staff only session)
Appendix
Budget
Timeline Detailed--- November
Levy FY27 Operating/ MPS
Certification Capital Budget Board
of Education
Meetings
Proposed
Final enrollment Business:
property
tax and revenue 18 November
statements
projections 2025
mailed
11/18--- Work Session:
Work Session to 25 November
present five-year 2025
forecast, revised
budget gap, and Finance
discuss school 2 December
board budget 2025
board priorities
(TBD
*All meetings
scheduled before January)
Tentative community
“Zone” meetings to discuss
district finances and
financial outlook
for FY27
Budget
Timeline Detailed--- December
Levy FY27 Operating/ MPS
Certification Capital Budget Board
of Education
Meetings
12/9/25 12/9/25 Business:
Truth
in audit 9 December
Taxation
presentations 2025
Hearing (starts at
MPS
Board 12/10-12/15
6:00 PM and
of
Education Meet with includes
approval associate
Truth-in-
superintendents
Taxation
to review meeting
preliminary
school
allocations Work Session:
No meeting
Community
Zone meetings Finance
to discuss No meeting
district finances and
financial outlook,
scheduled for
12/3 North High
12/4 Washburn
High
12/5 South High
12/10 Roosevelt
High
12/11 Southwest
High
12/16 Edison
High
FY27
Operating/ MPS
Capital
Budget Board of Education
Meetings
Community
Zone 2026 Board meeting
Meetings
to dates confirmed in
Discuss
finances January 2026
and
financial
outlook
for FY27
scheduled
for
1/14
Camden
High
School
1/15
Davis
Center
(staff
only)
Budget
Timeline Detailed--- February
FY27
Operating/ MPS
Capital
Budget Board of Education
Meetings
2/13/26--- 2026 Board meeting
School
and dates confirmed in
Department January 2026
allocations
sent
to
principals
Budget
Timeline Detailed--- March
FY27
Operating/ MPS
Capital
Budget Board of Education
Meetings
3/6/26--- 2026 Board
Budget
meeting dates
Tie-Out confirmed in January
(BTO)
closes
3/6/26—
4-1-26
Budget
Tie-Out
(BTO)
review
and
approval
Budget
Timeline Detailed--- April
FY27
Operating/ MPS
Capital
Budget Board of Education
Meetings
4/13/26--- 2026 Board
Interiew
meeting dates
and
Select confirmed in
January
Begins
Finance
Committee
reviews
the
budget
for
first
reading
Finance
Committee
reviews
the
capital
board
plan
Budget
Timeline Detailed--- May
FY27
Operating/ MPS
Capital
Budget Board of Education
Meetings
Budget
first 2026 Board
reading
by meeting dates
the
Board confirmed in
January 2026
Capital
bond
plan
presented
to
Board
Public
budget
report
on
district
website
Finance
Committee
reviews
the
budget
for
final
reading
Budget
Timeline Detailed--- June
FY27
Operating/ MPS
Capital
Budget Board of Education
Meetings
Operating 2026 Board
Budget meeting dates
Approval confirmed in
January 2026
Capital
Budget
Approval
Signed
budget
resolution
on
MPS
website
