Shakopee board weighs operating-levy questions as $7–9 million gap looms

Shakopee Public School District leaders told the school board on June 9 they face a projected $7 million to $9 million shortfall for the 2026–27 fiscal year and recommended preparing to ask voters for new operating revenue while also planning immediate spending reductions.

Superintendent Dr. Tim Redmond said district staff recommend $3,000,000 in expenditure reductions “that would be a recommendation, from district leadership and myself,” and warned that without about $5,000,000 in new revenue the district would need roughly an additional $5,000,000 in cuts on top of that baseline, bringing total reductions near $8,000,000.

The board was asked to direct district staff to prepare a ballot proposal for Nov. 4 that would include a tax-neutral first question (about $620 per pupil in present estimates) and a possible second question (about $288 per pupil by current estimates) to move the district “to the cap,” with final levy language and exact per-pupil figures to be confirmed after state calculations are released in late June.

Why it matters: Board members and staff framed the choice as between new local revenue and deeper operating cuts that could affect programming, staffing and class sizes. Redmond said the $3,000,000 in adjustments are largely the next step in routine alignment to lower enrollment and that the larger choices—whether to seek voter approval for new operating levies—must be decided in coming board sessions so staff can prepare ballot language and public information.

Key details from the presentation and discussion: - Projected 2026–27 deficit range: $7,000,000–$9,000,000 (district projection). The exact shortfall will depend on enrollment and state funding developments. - Leadership recommendation: $3,000,000 in initial expenditure reductions that would be implemented regardless of a levy vote to align recurring costs with enrollment. Redmond said those are “adjustments” many districts make when enrollment falls. - Revenue options discussed: (a) a single operating-levy question presented as tax-neutral by replacing some existing bond levy with operating levies (estimated ~$620 per pupil), and (b) an added second question (~$288 per pupil) that would raise the district to the statutory cap if voters approve both questions. - Timing: staff asked the board to consider a June 23 action to authorize levy planning and to finalize ballot language on July 28 after the Minnesota Department of Education/Department of Revenue provides exact cap calculations (expected by June 30). - If the first levy question fails, Redmond said the district still must make the additional budget cuts needed for 2026–27; if both questions pass, the added revenue would reduce or eliminate the need for deeper cuts in that school year.

Board members pressed staff for specificity about what programmatic cuts would look like and asked for scenario modeling by grade band and program area. Several trustees emphasized that special education obligations and other mandated services limit where cuts can be made; Redmond noted maintenance-of-effort and federal/state mandates constrain reductions in some categories.

What happens next: District staff will prepare levy language and a set of proposed expenditure reductions and return to the board for formal decisions. Redmond and finance staff flagged June 23 as a working action item date and July 28 as the deadline for final ballot language.

Ending: Board members asked staff to prepare clear community-facing materials explaining tax impacts and program trade-offs, and to model how reductions would affect schools by level if voter support falls short.