Minneapolis Schools to lay off hundreds as it faces budget shortfall

Minneapolis schools talk budget shortfall ahead

On Tuesday, Minneapolis school board members approved a tentative budget across the Minneapolis Public Schools (MPS) system aimed at trimming a nearly $75 million gap in funding. FOX 9’s All Day is joined by MPS Chair Collin Beachy to discuss the district’s next steps with its "priority-based" budgeting that will be finalized in August.

MINNEAPOLIS (FOX 9) - Facing a budget shortfall of $75 million in the upcoming school year due to a mixture of declining enrollment and expiring federal pandemic funds, Minneapolis Public Schools (MPS) officials say hundreds of full-time positions will need to be cut to correct the imbalance going forward.

Minneapolis Public Schools budget

Minneapolis Public Schools facing $75M budget shortfall

Minneapolis Public Schools is facing a major budget shortfall. FOX 9's Mike Manzoni has the latest.

What we know:

On June10, 2025, MPS board members approved a district-wide budget for the 2025-26 school year.

The district faced a grand total operating deficit of $95.1 million before a tech levy approved by resident voters last November provided the district with another $20 million toward balancing its budget.

The budget is said to "significantly reduce structural gaps and reliance on one-time funds" that "prioritizes students and continues student-facing programs and services."

According to district documents, the budget creates no "elimination of direct student programs or services."

Previous estimates during the 2024-25 budgeting process had MPS at an operating budget of $110 million.

MPS budget cuts

Dig deeper:

On the same day MPS board members approved their budget, Minnesota’s lawmakers approved a $66 billion statewide one as well that will in turn provide additional funding in subsequent years.

However, when comparing year-over-year MPS budgets, the district’s situation becomes clear – expenses continue to rise, while student enrollment (a primary driver for revenues) continues to decline.

In the latest budget, district-wide staffing expenses will increase by $7.1 million, or 5.5%. Special education services will also increase by $7.5 million, or 7.6%.

English learner services will also be reduced by $1 million, or 3.3%.

In March, teachers rallied to protest possible cuts to special education services.

In an effort to reduce expenses, the district says it made cuts in the "non-school facing portion of department allocations to minimize the impact on students" as much as possible.

Positions based at the Davis Center will be reduced by 13.84%, with the most significant reductions in the Association of Minneapolis School District Professionals (15.45%), Minneapolis Association of Confidential Administrators (12.32%) and in non-represented positions (16.67%), according to the district.

Even after the reductions, the district will still employ 5,634 full-time equivalent positions.

District officials also say that consolidating, or even closing, school buildings could be an option at their disposal for future budget considerations.

MPS currently operates 73 buildings across 436 acres of property, with 15 of them being more than 100 years old.

What's next:

Beginning in December, the district will again go back to the drawing board to decipher where its revenues and expenses align, and what adjustments will need to be made for the 2026-27 school year.

St. Paul Public Schools approve $1 billion budget

St. Paul Public Schools are finding ways to cover the $51.1 million budget shortfall in the 2026 fiscal year. FOX 9's Soyoung Kim has the full report.

St. Paul Public Schools budget proposal

The other side:

Across the Mississippi River, St. Paul Public School (SPPS) leaders said they plan to tap into reserves, make some cuts, and are exploring a referendum to cover their own $51.1 million budget shortfall in 2025-2026.