Minnesota superintendents warn unfunded mandates, rising costs leave districts facing multimillion-dollar shortfalls; committee lays over HF6

Superintendents and other district leaders told the Minnesota House Education Policy Committee on Jan. 22, 2025, that recently enacted state mandates and rising operating costs have produced multimillion-dollar deficits in districts large and small.

"We knew immediately we're in a $20,000,000 deficit because of that," said Corey McIntyre, superintendent of Anoka Hennepin Schools, describing higher contract settlements and the end of federal pandemic relief. He said his district has cut central-office positions and still faces roughly $12 million in additional shortfalls.

Why it matters: District leaders said the combination of flat or declining enrollment, inflationary costs, and new or expanded benefits for employees — including summer unemployment coverage, paid family and medical leave and earned sick and safe time — is forcing cuts to staff and programs and increasing pressure to ask voters for additional local revenue.

District-level examples and impacts

- Corey McIntyre, superintendent of Anoka Hennepin Schools, said special education and multilingual learner cross-subsidies total roughly $40 million for his district, and that anticipated reductions to certain aids could add about $3 million to that burden. He said the district made roughly $19 million in personnel reductions (about $5 million then $14 million) and still expects another $12 million in shortfalls…