Survey Shows Local School District Face Large Budget Deficits
Many school districts in the Twin Cities area say they’re expecting to face substantial budget deficits for the upcoming school year.
The Association of Metropolitan School Districts (AMSD) says the 53 districts it represents are anticipating a $280 million budget shortfall for fiscal year 2026.
According to AMSD, the shortfalls are the result of “historic inflation, escalating operational and labor costs, and significant new programs and requirements adopted by state policymakers during the last biennium.”
Anoka-Hennepin Schools is one of many districts projecting a budget deficit for fiscal year 2026.
What About Local Districts?
AMSD surveyed the districts it represents, asking each about their expected financial situation based on existing funding formulas. Districts also detailed their financial projections based on Gov. Tim Walz’s budget proposal.
School districts in the CCX News coverage area varied in their projected financial situations.
The Anoka-Hennepin School District, Minnesota’s largest district, expects a $15.9 million to $19.4 million shortfall.
“The reality is we are facing critical funding challenges and we have already made extensive administrative cuts, program cuts, and staff layoffs,” said Superintendent Cory McIntyre. “One of the state’s constitutional obligations and responsibilities is to fund public education. Now, more than ever, we need the state to live up to that promise.”
Osseo Area Schools is projecting a deficit of $11.3 million to $16.8 million.
Shortfalls are smaller for Hopkins Public Schools, which projects a $6.2-6.5 million deficit.
At Brooklyn Center Community Schools, the shortfall is between $500,000 and $1 million.
Plymouth-based Intermediate District 287 is eyeing a $101,200 to $436,900 deficit.
Wayzata Public Schools told AMSD that its financial state is “to be determined.” So did Robbinsdale Area Schools, which is grappling with about $20 million in cuts this year.
“We understand the state is also facing budget challenges, yet our school districts need assistance to address rising operational costs and to implement the new programs and requirements that were enacted during the last biennium,” said AMSD Chair Laura Oksnevad.
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