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Edina schools project $180.8 million in general fund revenue as administrators warn of later deficits
Summary
Director of finance Mert Woodard presented a preliminary FY2027 budget showing $180.8 million in general fund revenue and nearly $174 million in expenditures, a projected modest addition to fund balance this year but forecasted structural deficits beginning in FY2030 without changes, and highlighted a state increase in special education cross‑subsidy to 50%.
Mert Woodard, director of finance and operations for Edina Public Schools, told the board May 11 that the district’s preliminary fiscal 2027 general fund revenue is budgeted at $180.8 million while projected expenditures are just under $174 million.
Woodard said the budget includes richer, interactive reporting and 10 years of financial history. “This budget contains data from all 328 independent school districts in the state…more than 50,000 rows of data,” he said, adding the materials are being prepared to meet accessibility guidelines and to support review by the Association of School Business Officials.
The presentation stressed that state funding changes are material: the basic education formula will be tied to inflation in the coming biennium, yielding 2.69% growth next year, and the statutory special education cross‑subsidy is increasing to 50%, a change Woodard said was written into law in 2023.
Nut graf: The district projects a modest increase to its fund balance this year after earlier reductions, but Woodard warned that under current assumptions the five‑year forecast begins to run deficits in fiscal 2030–31, signaling limited capacity for new investments without structural changes.
Board members praised the level of detail. Woodard said audited fund balance grew to about 21% in fiscal 2025 after prior reductions and that the district carried out roughly $7.62 million in budget reductions in fiscal 2023 and 2024. “All that means is that while there's no imminent need for budget reductions this school year or the next three school years, the current structure also does not allow for significant enhancements,” he said, citing desired safety and program investments that are not possible within current assumptions.
Director Alenberg asked about the state’s blue ribbon commission work and pressures on special education funding; Woodard explained proposed biennial reductions and program impacts, noting some formula components used to finance intervention positions could be reduced.
The board did not take final action on the FY2027 budget; Woodard said the item will be brought back in June for approval. The district also encouraged board members and the public to use the interactive forecast tools to model salary, benefit and program changes and their effects on long‑term fund balance.
