Farmington projects $4.4 million 2025‑26 shortfall; finance committee recommends cuts to tuition programs, schedule changes and revenue steps

Superintendent Jason Berg told the Farmington Board of Education that the district's current budget model projects an approximate $4.4 million deficit for the 2025‑26 fiscal year if no structural changes are made. The finance committee and district leaders proposed a mix of program reductions and revenue changes to reduce the shortfall.

Key figures and assumptions shared by district staff during the meeting included an enrollment projection of 6,187 pupils used in the model, a special education revenue projection of about $17 million, and a conservative $1,000,000 assumption for interest earnings. Contract roll‑up costs were estimated near 2% (about $1.4 million) while the model illustrated that not renewing the current operating levy would add materially to the deficit in later years.

The finance committee recommended the following preliminary steps for board consideration and faster action where scheduling makes it necessary:

- MnCAPS: The district's participation in the MnCAPS program (an off‑site partnership program hosted in Lakeville and run with Prior Lake) was recommended for reduction. Superintendent Berg said Prior Lake plans to move the program back to Prior Lake High School amid its own budget reductions, which reduces District exposure to operating costs and creates scheduling conflicts for students.

- 9‑17 CTE programs: Participation and associated tuition for the regional 9‑17 CTE program have declined (from 58 students two years ago to the 30s this year), increasing per‑student costs. The board recommended considering reducing or discontinuing tuition payments for low‑enrollment slots while district staff explore building similar opportunities in‑house.

- Cosmetology: The cosmetology program, which has varied historically in format and enrollment, was flagged for reduction due to low enrollment and program cost dynamics.

- Middle school schedule: District leaders presented an alternative schedule that would move both middle schools from an alternating block schedule (four long periods alternating A/B days) to a six‑period day with daily classes of about 53–54 minutes, a 25‑minute advisory and a 30‑minute lunch. The projected savings from a schedule change were described as structural and ongoing; staff cautioned that moving to a six‑period day would remove team planning time from the instructional day and require organizing teacher planning before/after school or through other models.

- Facilities and activity revenue: Administration presented a package of rate adjustments and operational changes (facility rental fees, ticket pricing, activity fees, parking and transaction‑fee pass‑throughs) intended to increase revenue by roughly $555,000 annually. The broader facilities work aims to raise about $50,000 year‑over‑year in general facility rentals and an overall $555,000 if combined with activity and ticketing changes.

District staff and board members discussed programmatic, instructional and equity implications. Several board members asked for staff and teacher feedback before any final decision on the middle school schedule; the administration agreed to collect staff input and return reports in subsequent Friday notes and meetings. Superintendent Berg said the MnCAPS, 9‑17 and cosmetology reductions are time‑sensitive because of registration and partnering‑school scheduling; he recommended bringing those items back for board action in the near term.

The board directed staff to proceed with targeted next steps: gather staff and family feedback on the middle school schedule proposal, prepare implementation details for MnCAPS/9‑17/cosmetology reductions, and bring the proposed facilities rate adjustments to the board for action. The district also announced community budget engagement sessions (virtual and in‑person) and staff reiterated that the board will present options for further public input before adopting final cuts.