DULUTH — The city's public school district announced it will reduce its overall budget by approximately $5 million for the 2025-2026 school year. This follows $2.6 million in cuts already made for the current school year.
Staffing will see an 8% reduction, including $1 million at the elementary level and $1.35 million at the secondary level, according to a news release from Duluth Public Schools. The district service center staffing will be reduced by $1.1 million (or by 10%), and the special education/care and treatment department will drop by $1 million (or 3.5%).
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The need to reduce the budget stems from financial challenges, the release said. In addition to federal pandemic relief funding having sunset after two years on June 30, the district felt the effects of inflation, new unfunded legislative mandates, and rising special education costs.
Schools across the state are facing several new challenges and budgetary constraints due to legislation passed over the past two years.
In 2023, Minnesota Democrats introduced an education bill that included over 60 new mandates — many underfunded or unfunded, ranging from curricular and program changes to employment law.
In a March 14 letter to the chairs of both the House and Senate education policy committees, multiple education associations representing districts statewide wrote, “School boards, administrators, teachers, and other staff are working very hard to implement the new requirements and they need time to ensure the new programs are implemented successfully.”
Additionally, the letter laid out the budget impacts for the cost of implementation, in addition to workforce challenges created in training staff or hiring new staff to enforce, monitor and report on the newly imposed mandates.
Earlier this year, additional unfunded mandates were passed in the Omnibus Education policy bill (SF 3567).
The decision to make significant reductions to the district’s budget was not taken lightly, according to a statement from Superintendent John Magas.
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"We understand the impact these adjustments may have, and we are committed to minimizing disruptions to our students' educational experience," Magas said in the release.
According to the district’s website, enrollment remains stable despite the financial challenges. As budget constraints are addressed, the district said it will seek efficiency and new funding sources while prioritizing classroom needs.
The district stated in its release that it remains committed to transparency and open communication throughout this process. Magas and Business Services Executive Director Simone Zunich have been holding staff meetings at each school, as well as meetings with representatives from each bargaining group.
"We value the input of our stakeholders and will continue to provide updates as we move forward," Magas said in the release. "Our goal is to ensure a balanced budget while upholding our commitment to providing a high-quality education for all students."
A balanced budget is imperative to avoiding statutory operating debt, which occurs when a district’s operating debt exceeds specific limits set by state law. According to the district’s website, this would restrict the financial flexibility of the education system and could lead to increased state oversight of its finances.
The district will be examining all legacy practices, as well as maintaining a minimum 8% fund balance to avoid statutory operating debt, its website states.
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