The Minneapolis Public Schools Board of Education voted to approve a nearly 13% increase to the property tax levy next year at its Truth in Taxation meeting on Dec. 10. The double-digit increase includes the voter-approved $20 million technology levy. The new funding will be available in the 2025-26 school year.

Property Tax Levy Update

The proposed tax levy reflects the increase in the operating capital levy that voters approved in November, for a total levy of $279 million, a 12.6% increase from the prior year, according to Aaron Gilbert, Director of Finance. The funds will be available for the 2025-26 school year. Later in the meeting the board voted to approve the property tax levy as proposed.

Preliminary Audit Results

A preliminary summary of the district’s financial audit was presented at the school board meeting by Andy Grice of Bergen KDV, the firm the district hires to perform its annual external audit. There were five findings, or issues, in the audit this year. The firm found eight findings last year.

The auditors reported three material weaknesses: segregation of duties, prior period adjustments and material audit adjustments. The segregation of duties finding was also reported last year. It means that the district does not have sufficient staff in the finance department to separate responsibilities for receiving invoices, making payments and reconciling transactions.

Although the school board typically receives the full audit report at its December meeting, this year the final report will not be presented until Jan. 6, 2025. There was no reason given for the delay. Last year’s audit report was delayed because of turnover of staff in the finance department.

Financial Overview and Budget Update

Grice also presented a brief financial overview of the district looking at historical data. The district received $6.5 million more in revenue than it budgeted for this year, but its expenses were $8.8 million higher than it budgeted.

The general fund balance increased to $152.2 million at the end of the fiscal year in June. The district expects to end the current fiscal year with $66 million remaining in the general fund balance, according to Senior Finance Officer Ibrahima Diop. About $57 million of the general fund balance must be held as unassigned (cannot be committed to future expenses) in order to comply with the school board’s fund balance policy.

The district’s expenses have increased 20% since 2020, even though enrollment has declined by 13%. Spending per student increased 39% over the same time period, according to data Grice presented. At the same time, revenue per student increased by 32%, largely because of temporary pandemic aid that has now ended.

The number of school-age children living within the district has declined by 6% since 2020.. Between 2023 and 2024, the number of school-age children living in the district increased 2.7%, while enrollment in Minneapolis Public Schools increased 1.5%, according to data shared by Grice.

This year’s budget plans for expenses to increase an additional 3%, while the end of federal pandemic aid means revenue will decrease by 10% compared to fiscal year 2024, according to data presented by Diop. State general formula aid increased 2% this year.

Public Comments focus on class sizes

The majority of public commenters spoke about elementary classrooms exceeding class size caps in several district schools, particularly Bryn Mawr and Dowling Elementary Schools. According to the speakers, the district concluded its staffing adjustment process at the end of October and determined that the schools did not need additional classroom teachers, even though many classrooms exceed the class size caps specified in the district’s contract with the Minneapolis Federation of Teachers.

When class sizes exceed the caps, the district has multiple options for responding besides adding an additional classroom, according to the contract. This can include adding support staff or paying teachers an additional stipend at the end of the school year.

District 6 Board Director Ira Jourdain’s Term is Ending

After serving as the District 6 board representative for eight years, Ira Jourdain said farewell to the board and community. Jourdain spoke with Minneapolis Schools Voices about his time on the board in an interview that will be featured in a forthcoming article.

Student Representatives Term Ending

This was the last meeting for the board’s student representatives, Elliston Rounds of North High School and Leo Peralta of Roosevelt High School. Two new student representatives will join the board at the beginning of next year.

Legislative Agenda Update

The district’s lobbyist, Josh Downham, presented a proposed legislative agenda for the upcoming State budget. Downham noted that the recent election results, where there is now a tie in the State House of Representatives between DFL and Republican members, will make it more difficult to enact the district’s priorities.

The State has also reduced its forecast for a budget surplus for the upcoming legislative session to just $616 million, according to Downham. He expects that the final budget forecast, which will be released at the end of February, may show an even smaller surplus because of federal policies, like tariffs, that may be enacted by the new administration.

Downham said that parents can join the district’s Parent Legislative Action Committee to receive emails and attend meetings with more information about how they can advocate for the district at the state level. He is also working to develop coalitions across suburban and rural districts to advocate for common legislative priorities.

The school board will vote in January on a final legislative agenda.

School Calendar Update

The school board will vote in January to approve school calendars for the next three school years. Ryan Strack presented an overview of the proposed calendars, which are largely unchanged from the calendar for this school year.

The school board meets next as a Committee of the Whole on Dec. 17 at 5 p.m.