Minnesota school districts face budget cuts amid declining enrollment trends

The House Education Finance Committee of the Minnesota Legislature convened on March 6, 2025, to address pressing issues surrounding school funding and enrollment trends in the state. The meeting highlighted significant concerns regarding declining student enrollment and its impact on school district finances.

During the session, committee members discussed the troubling trend of enrollment loss across Minnesota schools. From February 2019 to February 2024, the state experienced an average decline of 84.27 students per district, with rural districts losing an average of 34.13 students and metro districts facing an average loss of 368.37 students. Notably, 210 out of 327 school districts reported declining enrollment during this period.

One key point raised was the financial implications of this decline. As funding for schools is based on Average Daily Membership (ADM), districts with fewer students receive less financial support. A representative from Belle Plaine shared a personal example, indicating that despite a 2.74% funding increase, the district would face a budget shortfall of $53,095.69 due to declining enrollment and proposed reductions in compensatory and special education funding. This situation is compounded by rising costs, including an 8% increase in health insurance and other obligations totaling $310,000.

The committee acknowledged the complexities of the funding system and the challenges faced by districts as they navigate these financial pressures. The discussion underscored the need for oversight and accountability from the Department of Education, as members sought to understand the broader implications of these trends on educational quality and district sustainability.

As the meeting concluded, members prepared to address further questions and continue discussions on additional informational bills, emphasizing the importance of ongoing dialogue regarding education funding and enrollment strategies in Minnesota.