Superintendent warns district could lose $1.5 million under new state counting; board directs administration to recommend reductions

Superintendent Dr. Zambrino told the South Saint Paul School Board on Feb. 24 that a change in how the state counts students eligible for compensatory (poverty) funding could reduce the district's compensatory revenue from about $4.5 million to roughly $3 million, a loss of about $1.5 million.

"If nothing changes and we only count direct certified students, we're gonna go from 4,500,000 to 3,000,000, and we're gonna lose 1,500,000," Dr. Zambrino said, describing the Department of Education's new practice of relying on direct certifications from county benefit rolls rather than including families who file free/reduced-price applications.

The superintendent said the district's actual incidence of students qualifying through applications is about 58 percent, versus a 42 percent direct-certification count the state is currently using. He told the board that the governor has proposed a one-year "hold harmless" fix and that he is participating in follow-up conversations with the Commissioner of Education; he also asked the public to contact legislators to press for action.

"I'm cautiously optimistic," Dr. Zambrino said of the proposed fix, but he added that the district must plan as if the change is permanent and prepare to align staffing and programs to lower projected revenue.

The board voted 7-0 to approve a resolution directing administration to make recommendations for reductions in programs and/or positions and the reasons for them, an annual procedural step the board uses when budgeting for the next fiscal year. Human Resources director Joel Miltier told the board the resolution is the "initial step in the staffing process as it relates to potential unrequested leave of absences for teachers." The board passed the resolution by roll call vote with all members recorded as "yes."

Dr. Zambrino reviewed other budget context for the board: local levy and other local revenue of about $12.5 million, a smaller federal bucket (about $1.25 million), and the role of the state's general formula and categorical grants. He reminded the board that the district has lost about 100 students per year and highlighted class-size averages (elementary homeroom average ~23; middle school core classes ~24; high school core classes ~26). He traced recent steps the district took after federal ESSER dollars began to sunset and noted that the district asked voters in prior referenda ("Packer Promise" questions) to replace those one-time funds and add targeted student supports.

Why it matters: the compensatory revenue shortfall would affect classroom supports and programs targeted at students in poverty. The board's motion directs administration to produce recommended reductions and to return with specifics for future action, preserving the district's ability to act quickly if the legislative hold-harmless does not pass.

Votes at a glance: - Resolution directing administration to make recommendations for reductions in programs and/or positions and reasons therefor: motion made/seconded (not specified on the record); roll call 7–0 in favor; outcome: approved. Notes: this is a standard annual resolution but took on urgency given the compensatory revenue change. - Other votes connected to district finances and operations (listed in related board articles): see separate items for cooperative agreements, grants and personnel approvals.

Ending: Dr. Zambrino said the district is pursuing advocacy and a technical fix at the Capitol while preparing internal options; he asked community members to contact legislators and said district leaders will present concrete recommendations in coming weeks.