Saint Paul Public Schools presents FY2026 budget shortfall, outlines cuts, use of reserves and timeline

At a special April 29 meeting, Saint Paul Public Schools finance leaders told the Board of Education that the district faces an estimated $51.1 million shortfall for fiscal year 2026 and outlined steps the district plans to take to balance the budget.

Tom Sager, the district’s chief financial officer, told the board and the public the shortfall results primarily from rising employee wages and benefits and higher operating costs while most categorical state and federal revenues do not increase automatically with inflation. Sager said the district expects its per-pupil base general education formula to increase from $7,281 to $7,481 next year, and that roughly 70 percent of a district’s revenue typically comes from the state.

Sager said the district plans to close much of the gap by drawing on reserves and a combination of budget cuts and new revenues. He characterized reserve funds as the…