Duluth Public Schools signals staff displacement as it moves to close multimillion-dollar budget gap

Duluth Public Schools officials on Tuesday told the school board they are moving forward with a budget realignment that includes $2.6 million in reductions in the current year and roughly $5 million in reductions next year, and that letters notifying employees of displacement will go out on Friday.

Superintendent John Magus said the district has tried to limit impacts on classrooms but that with roughly 85% of the budget tied to staff salaries, some personnel effects are unavoidable. “Displacement means that you are contractually, so to speak, separated from the position that you currently hold, but you're still an employee in the district,” Magus said, explaining the difference between displacement and a layoff or termination.

Why it matters: The district’s staffing decisions affect classroom coverage, special programs and student services across Duluth. Board members emphasized the district has worked to follow contractual seniority and bargaining rules while minimizing involuntary separations.

What administrators said: Magus said human resources and supervisors have been working with unions and that principals and supervisors have been notified of who may be displaced so they can carry out personal conversations before staff receive formal letters. “We don't want people just receiving a letter. We want them to hear it from their supervisor,” he said.

Executive Director Simone Zunich (Business Services) provided the financial context. She told the board that the district’s guiding document calls for a 10% reduction in districtwide services and an 8% reduction at site budgets as part of the realignment. Zunich and Magus cautioned the board that the displacement list could change based on retirements and other developments: the district was still receiving retirement notifications ahead of the certified retirement deadline and said that increases in enrollment or state funding later this year could reduce or change who is ultimately laid off.

Board reaction and process safeguards: Board members praised the administration’s communication and process. Member Lofeld thanked staff for what she called an “intentional journey” and said the administration had involved the board throughout the year. Member Loeffler Kemp urged continued advocacy with state legislators and noted Minnesota’s historic investment in early childhood and school lunch programs.

Next steps: Displacement letters are due to be sent Friday. The district will hold informational meetings with employees and the unions to explain displacement rights, seniority lists and the next steps for staff. Magus said the district will continue to monitor retirements, enrollment and potential state or federal funding changes that could alter staffing outcomes.

Clarifying detail: Magus said the district is reducing about $2,600,000 in the current year and expects about $5,000,000 in reductions next year; board discussion referenced a cumulative figure of about $7,000,000 in recent budget actions. The district emphasized displaced employees remain employees of ISD 709 while the process unfolds.

Ending: The board did not take a formal vote on personnel actions at Tuesday’s meeting; those actions will proceed through the district’s HR process and any future board actions as required by statute and contract.