Board review: Hopkins moves from expenditure-based budgeting toward enrollment-driven revenue model after 2021 equity audit

The Hopkins Public Schools Board received an update on May 6 on steps the district has taken to implement recommendations from a 2021 systemwide equity audit, focusing on changes in business services and budgeting.

Superintendent Mary Pirie Reid framed the presentation and Dr. Brown summarized the audit's original findings, which flagged that historic annual budgets prioritized historical expenditures and inflation rather than building-specific enrollment and needs, and that principals reported limited local control over school-level allocations.

Director Chapinduca told the board the district has moved toward a revenue-driven budgeting approach since fiscal year 2022. Under that approach, the district uses enrollment and predictable-staffing formulas to allocate base resources and then layers categorical and compensatory funding. Chapinduca said the district now returns a larger share of compensatory dollars to the buildings that generate them: "Starting in fiscal year 22, we started distributing around 75% of the compensatory resources back to the buildings which are generating those dollars. And then when state statute changed to 80%, we just had to make a shift of 5%..."

Why it matters: Board members said the new approach improves transparency and gives site leaders better information to advocate for building needs. Several board members praised the predictable-staffing model as a tool for aligning staffing allocations to enrollment and student needs, noting it also helps teachers and family stakeholders understand resource decisions.

Changes described and effects

District staff described key changes: moving from an historic expenditure model to a formula-driven revenue model tied to enrollment; revising how categorical funds (including compensatory revenue) are distributed so that a larger percentage stays at the generating sites; and increasing transparency so principals and site leaders can see and be accountable for allocations. Chapinduca said the revenue model helps the district avoid drawing down fund balance to cover recurring expenses and supports structurally balanced budgets.

Board reaction and next steps

Board members asked clarifying questions about equity implications, and staff explained the approach is intended to make resource distribution more equitable by tying allocations to student counts and student-needs indicators at the building level while preserving central capacity for districtwide priorities. No formal action was taken; staff said this work is ongoing and that refinements continue as the district collects feedback from principals and other stakeholders.

Ending

The board thanked staff for the update and asked for continued reporting as the district refines allocation formulas and publishes clearer school-level budget information for staff and the community.