Counterpoint: District must also protect safe, stable finances

A healthy organization doesn't use one-time funds for ongoing salaries.

By Ibrahima Diop

March 17, 2022 at 10:45PM
Educators on strike picket outside Justice Page Middle School in Minneapolis on March 8. (Alex Kormann, Star Tribune/The Minnesota Star Tribune)

As the financial leader for Minneapolis Public Schools for the past six years, my job has been to ensure that the dollars taxpayers have invested in their children's public education are used wisely. My job is also to make sure that our current financial management ensures we are fiscally robust for our future students.

"Flush with cash" is a dangerous and irresponsible phrase to toss around, as it was in "Educators are striking for safe, stable schools" (Opinion Exchange, March 15). This indicates a myopic approach to the financial health of this 150-year-old institution.

I am proud that today the MPS Unassigned Fund Balance stands at approximately $55 million after years of subpar totals well below the board-required minimum of 8% of the MPS operating budget. MPS also maintains an Assigned Fund Balance of approximately $52 million for targeted and specific purposes such as a planned near-future curriculum adoption or a second or third year of a multiyear funding.

Any healthy public institution maintains well-funded balances both for purposes of emergency needs as well as to ensure a strong bond rating.

Yes, MPS is slated to receive some $261.5 million from the federal government to mitigate the impact of COVID-19. MPS is, in fact, investing $190.5 million of those resources back into our students, schools, programs, and health and safety measures. No well-managed organization would use one-time dollars to increase ongoing salaries knowing those funds will end in two years.

The most recent MPS salary proposal to the Minneapolis Federation of Teachers (MFT) would:

  • Increase the average teacher salary in the district to over $75,000.
  • Increase the starting salary for our newest teachers above $50,000, one of the highest starting salaries in the state.

Since the 2% annual cost-of-living adjustments MPS has offered through negotiations are in addition to the step increases teachers automatically receive every year, the amount paid to our teachers would increase, on average, by about 4% annually in both years. Additionally, we have offered a one-time $2,000 bonus to each and every teacher.

Our education support professionals (ESPs), on the other hand, include some employees with salaries below what they should be. We acknowledge that, and for that reason, MPS has proposed an annual cost-of-living adjustment of as much as 8% in the first year, 3% in the second year, and a "step" increase that will further improve wages for most of our ESPs by around 4%. We have also offered a $3,000 bonus to be paid to all our ESPs upon contract ratification.

MPS shares many of MFT's values. But with student enrollment declines and the underfunding of public education, MPS cannot afford the union's current requests. Each year, MPS provides more than $70 million worth of special education and English learner services for which we are not reimbursed by the government.

At this time, MPS is facing a $59.5 million budget shortfall for fiscal year 2022-23. Due to our one-time emergency-relief funding, MPS is able to reduce the budget deficit to $21.5 million. However, this means that after next year, the funding gap will continue. With the addition of MFT proposals totaling $80 million for teachers and up to $20.4 million for ESPs in the first year, MPS is looking at substantive budget cuts, layoffs and potentially long-term damage for this district.

We implore everyone to think about the future of Minneapolis Public Schools. We deplore the idea of continued days out of the classroom but are deeply bound by our responsibility to keep MPS a financially viable organization for generations of students to come.

Ibrahima Diop is chief financial officer, Minneapolis Public Schools.

about the writer

about the writer

Ibrahima Diop

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