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.
Learn More
Find information related to the budget process on our Budget Documents page.
With questions about the budget process, email mps.finance@mpls.k12.mn.us.
Year 1
During year 1, MPS laid out a budget allocation process that centered students and focused on reductions over eliminations, ensuring that the district could meet both its legal and contractual obligations and centering equity.
At the time, MPS faced a historic $110 million dollar budget gap.
Year 2
During year 2, 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 3
As MPS begins year 3 of our multi-year strategic financial work, we will be hosting a series of area community meetings in each attendance area focused on sharing more information about the budget and gathering feedback about school transformation.
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.
Access the Slides
Budget Timeline
| Month | 2026-27 Operating/Capital Budget |
|---|---|
| December 2025 | Hold budget area meetings with community |
| January 2026 |
Continue budget area meetings with community |
| 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 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.