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Superintendent warns Fridley faces more than $1 million compensatory funding loss; urges legislative advocacy
Summary
Superintendent Brenda Lewis told the Fridley board the Minnesota Department of Education change to counting direct certification will reduce the district's compensatory revenue from $6,663,282.70 to $5,646,003.17 next year and recommended active advocacy through AMSD and MSBA to seek fixes and further funding reforms.
Superintendent Brenda Lewis told the Fridley Public School District board on Jan. 20 that a change by the Minnesota Department of Education to how compensatory revenue is counted — specifically changes tied to county and direct certification — will reduce the district's expected compensatory revenue from $6,663,282.70 for the current year to $5,646,003.17 next year, a decline of roughly $1,017,279.53 if no legislative action is taken.
Lewis said compensatory revenue recognizes additional needs in districts with higher percentages of students qualifying for free and reduced-price meals and similar programs. She explained the change removes certain family form submissions from the count and that the compensatory formula pays out on a one-year lag, meaning this year's funding reflects last year's counts. Lewis also noted the district's enrollment has increased by more than 100 students this year, affecting revenue calculations.
Lewis identified related fiscal pressures: implementation of the READ Act, which she estimated costs the district roughly $400,000 annually while state aid covers about $160,000 for one year, higher unemployment premiums and substitute costs generated by expanded unemployment eligibility for some school employees, and other unfunded mandates. She said these pressures compound the impact of the compensatory change.
To address the shortfall and broader funding inequities, Lewis outlined legislative priorities backed by the Association of Metropolitan School Districts (AMSD) and referenced the Minnesota School Boards Association (MSBA) platform. Key items she highlighted include a 3% formula increase for fiscal year 2026–27, raising local optional revenue from $7.24 to $9.74 per pupil, increased equalization of operating referendums and debt service levies, expanded allowance for extended-time programming, and reducing cross-subsidy of special education and English learner (EL) programs.
Lewis raised concerns that proposals to add undocumented-student counts only to the EL formula would not address Fridley's needs because many undocumented students in Fridley do not qualify as EL under the same criteria used in larger districts. She urged the board to participate in AMSD and MSBA advocacy, meet with legislators and use district data to explain the local impacts.
Lewis said she had a recent exchange with State Senator Kanesh summarizing the district's revenue figures and emphasizing the urgency; she said the senator replied that the issue is known and being worked on. Lewis recommended that board members engage in MSBA and AMSD activities, consider delegate assembly participation and take part in MSBA legislative briefings this session, including virtual Friday chats and a day at the Capitol planned for March 10.
Lewis also praised the Fridley Police Department for its partnership during a recent incident and said she invited Lieutenant Titus and school resource officers to present at the board's February meeting.
Ending note: Lewis asked trustees to be prepared to support district advocacy in the legislative session and to use concrete district financial data when meeting with lawmakers.
