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District unveils FY26 proposed budget; anticipates reserve drawdown and staffing adjustments

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Summary

Administration presented the FY26 proposed budget showing a $51.1 million shortfall, plans to draw down $34.9 million from reserves, and described planned central-office reductions and school staffing reallocations; the board will vote on adoption June 10.

Saint Paul Public Schools administrators presented the district’s proposed fiscal year 2026 budget Tuesday, describing a multi-step strategy that relies on reserve drawdown, targeted reductions and revenue adjustments to close a projected $51.1 million gap.

Chief Financial Officer Tom Sager and other district leaders told the board the district plans to use $34.9 million of its fund balance for FY26 and to close the remaining gap through a combination of central-office reductions, school allocations, federal reimbursements and other revenues. The presentation was informational; the board will vote on an adopted budget at its June 10 meeting.

Key numbers and steps: The administration cited a $51,100,000 shortfall driven largely by rising…

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