2026-27 Budget Process

MPS, like many school districts across the country, continues to face resource challenges due to significant financial constraints caused primarily by expenses outpacing revenue and reductions and changes to state and federal funding.

Financial strain increased during the 2024-25 school year due to the end of COVID-19 emergency funding from the federal government, decreasing enrollment at the time and escalating costs. That year MPS started a multi-year process in order to move the district closer to sustainability.

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Budget Glossary of Terms

Minnesota School Finance: A Guide For Legislators

Year 3

MPS is currently working on our budget for the 2026-27 school year. Like many districts across the state and country, MPS continues to face substantial budget gaps due primarily to the chronic underfunding of public education and expenses outpacing revenue growth. MPS invites parents and community members to get involved in our MPS Parent Legislative Action Committee to receive updates and action alerts about opportunities to get involved.

For FY 2027, MPS is facing a projected budget gap of $50.5 million dollars requiring significant reductions in order to balance next year’s budget, which is legally required by the school board. Our obligations including contractual, statutory and grant-related, commitments to programming, predictable staffing and school configurations and other restrictions dictate where significant portions of funding is used. Fund balance is also not available to close operating budget gaps in recent years, as it has been already used, so expenses must match revenue.

While our financial situation requires that very difficult decisions be made, our proposed budget invests in supports, programs and services in alignment with our school board’s values which include centering students and mobilizing resources to support students within available resources. Additionally, MPS is decreasing the reliance on one-time options like fund-balance to balance our budget, moving the district closer to sustainability and improved financial stewardship.

Year 2

During year 2 (2025-26 budget year) as requested by the School Board, MPS implemented a priority-based budget process. MPS also added a ballot question which MPS voters approved, reducing the need to make approximately $20 million dollars in reductions.

MPS focused on finding efficiencies and making reductions as far away from the classroom as possible (approximately 90 positions were cut from central office alone).

Through the school transformation process, MPS conducted a “Caregiver Priorities Survey” which informed the budget process. One of the key priorities for caregivers was reducing class size which resulted in significant investments to prevent splits in grades K-2 and support for additional staff based on the staffing adjustment process.

Year 1

See Board Budget Values and Priorities

MPS Five-year Projections

MPS Five-year Projections

On Nov. 25, the Finance Department shared five year projections. These five year projections forecast what will happen if the district continues without taking any steps to either reduce expenses or significantly increase revenue.

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Budget Timeline

Month	2026-27 Operating/Capital Budget
December 2025	Hold budget area meetings with community
January 2026	Continue budget area meetings with community Close the budget gap
Jan. 27, 2026	Finance Committee Budget Development Process Update See slide deck
February 2026	Send budgets to schools and departments
Feb. 10, 2026	Regular Business Meeting See slide deck
Feb. 24, 2026	Finance Committee Budget Development Process Update See slide deck
March 2026	Complete budget tie out (BTO) See slide deck
April 2026	Present budget at the Finance Committee meeting
May 2026	Present the budget to the School Board for first reading of the budget
June 2026	School Board adoption of the budget

School District Funding in Minnesota

Watch the videos below to learn more about how Minnesota's schools are funded and what those funds go toward.

Frequently Asked Questions

Budget FAQs

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2026-27 Budget Process

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Year 3

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MPS Five-year Projections

Watch the Presentation

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Budget Timeline

School District Funding in Minnesota

Frequently Asked Questions

Budget FAQs

How are budget decisions made?

What are the main sources of funding for MPS?

What is the fund balance?

How can the community get involved in the budget process?

Where can I find detailed budget documents?