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Minnetonka board approves $5 million in budget reductions for FY26 amid state funding uncertainty
Summary
The board approved a package of budget adjustments for fiscal 2026 that aim to eliminate a projected roughly $4.96 million deficit, primarily through personnel reductions and modest fee increases, and directed monitoring of financial forecasts.
The Minnetonka School Board on Jan. 7 approved budget adjustments intended to close a projected fiscal year 2026 deficit of about $4,955,000.
Paul (last name given in packet as "Bourgeois" in the meeting) presented the financial outlook, saying the district faces a projected deficit of just under $5 million for FY26 and that 88% of the general fund budget is personnel costs. The proposed adjustments focus on reducing personnel costs and include specific target amounts: $375,000 from district center/service center and associated support staff (7.5% target), $375,000 from building administration (7.5% target), roughly $3,200,000 targeted from teachers (about 65% of the proposed reduction dollars), $750,000 from paraprofessionals (about 15% of the reduction dollars), and $250,000 from other staff (5% of the reduction dollars). The plan also includes a proposed 10% increase in participation and bus fees, estimated to generate about $50,000.
The presenter emphasized that the $5 million figure is a projection and that major uncertainties remain, including negotiations with the district's largest bargaining unit and an unfavorable state fiscal forecast. The administration noted that state revenues have not kept pace with inflation and that large additional state funding is unlikely based on current forecasts.
During discussion, Board Member Megan Selinger said a community member had expressed alarm that the district would be cutting 65% of teachers; she clarified that the 65% figure referred to the share of reduction dollars targeted to teacher-related costs, not to a cut of 65% of teaching positions. Superintendent David Law clarified that the total reduction equates to roughly a 3% reduction across the district budget (not a 65% reduction in teacher headcount).
After public discussion and board remarks thanking staff for outreach and work on the proposal, the board voted to approve the FY26 budget adjustments. The motion carried by voice vote; the transcript records "motion carries" but does not include a roll-call tally.
Ending Board members said the district and finance advisory committee will monitor the financial forecasts and consider further steps if the legislature does not provide additional funding. The adopted adjustments are designed to maintain a minimum fund balance and to align spending with projected revenue for FY26.
