Minneapolis Public Schools faces $30 million deficit

That’s less than the $75 million budget shortfall Minneapolis faced this school year before making large cuts. Some parents are now fighting any talk of school closures.

The Minnesota Star Tribune
December 19, 2025 at 12:00PM
Minneapolis Public Schools is engaging families, students and staff members in conversations around the budget, which has a $30 million deficit. (Carlos Gonzalez)

Minneapolis Public Schools is eyeing another deficit in a string of annual budget shortfalls — this time, at least $30.3 million in 2026-27.

The deficit is lighter than the $75 million gap the state’s third-largest district faced entering the current school year, for which the school system enacted its highest level of cuts in a decade, an official said.

The $30 million deficit is now the subject of a series of community meetings that will continue into January. Attendees are being asked, too, what they value and desire in their children’s education as part of a district “transformation” process that could eventually include closing or merging schools.

But closures and mergers are not yet part of the community conversations.

Superintendent Lisa Sayles-Adams has until April to report to school board members about the more controversial aspects of a potential district makeover, and for now, the community engagement is focused on academics and ideas to boost enrollment.

A new parents group, Minneapolis Families for Public Schools (MFPS), working with the help of TakeAction Minnesota, the progressive political advocacy group, has enlisted members to attend the sessions ahead of them potentially pushing later against school closures.

They are critical, too, of what they describe as the district’s “doom and gloom” approach to budgeting.

Minneapolis makes five-year projections part of its annual budget process, and in the past few years, it’s shown the district’s reserves being wiped out at the back end.

In a recent community meeting at South High School, Ibrahima Diop, senior financial officer for Minneapolis Public Schools, emphasized that the forecast projects what would occur if the district made no changes to its budget. But every year, he said, “we do what we need to do as fiscal agents of the district to make sure that we control our expenses.”

For the current school year, Diop said, the district enacted cuts at levels not seen in the past 10 years. In June, when the budget was approved, the district said in a statement that it was cutting 400 positions, including nearly 120 teachers, according to WCCO-TV.

The end result: Whereas five years ago, when the forecast showed the district’s reserves plummeting to a negative $75 million to $78 million in 2025-26, Diop said, it now is expected, instead, to have a $140 million balance due to moves made along the way.

Some parents who still cite a lack of trust with the district over a sweeping, controversial overhaul in 2020 say the shifting numbers do not inspire confidence.

“They’re not being real,” said Shannon Gibney, a parent leader with Minneapolis Families for Public Schools. “They’re setting up a narrative around scarcity and a fear around funding.”

Diop, indeed, cited fears over the potential loss of federal revenue as a reason why the district intends to do all it can to avoid dipping into reserves to balance budgets beginning in 2026-27. But the community engagement sessions, he told South High attendees, also are an attempt to “strengthen transparency.”

Concerns about class sizes

At the community meetings, which are taking place through Jan. 15, attendees file into separate rooms designated for parents, staff members, students and community members.

Parents are asked about their school choice decisions, and their children’s experiences with core classes like math and English language arts, as well as those “beyond the core,” including dual language programs, advanced coursework and career connected learning.

“People did have a lot to say,” Gibney said. “One thing I heard loud and clear as an asset was diversity and embracing cultural competency.”

No one mentioned cuts or school closings. Large class sizes, however, remained a concern, Gibney said.

The parents group rallied behind the Minneapolis Federation of Educators in its recent contract demands. A deal was reached in November just days before teachers were set to strike, and it called for lower class sizes at schools with 70% or more students qualifying for food assistance.

The two sides also agreed to create school-based committees to resolve class-size cap violations, but in the end, MFPS’s hopes that parents, too, would have a seat at the table fell by the wayside.

“But we did feel good that it gives us a different foothold in terms of accountability and oversight for those issues as they may arise,” said Rob Aspholm, a MFPS parent leader who attended bargaining sessions.

He said that investments, as opposed to closures or mergers, should be the district’s path forward.

Ty Thompson, deputy superintendent for Minneapolis Public Schools, offered similar thoughts at South High.

“School transformation is the process where we’re planning for the budget as we reimagine the MPS student experience,” she said. “This process is not just about the district’s physical footprint, but how we can deliver an academic product that sets up all of our students for success.”

The district reported Thursday that about 500 community members have engaged in the process thus far and that it also is gathering input through a survey, focus groups, one-on-one interviews and other means. The findings will be reported by the district in the spring.

about the writer

about the writer

Anthony Lonetree

Reporter

Anthony Lonetree has been covering St. Paul Public Schools and general K-12 issues for the Star Tribune since 2012-13. He began work in the paper's St. Paul bureau in 1987 and was the City Hall reporter for five years before moving to various education, public safety and suburban beats.

See Moreicon

More from News & Politics

See More
card image
Carlos Gonzalez

That’s less than the $75 million budget shortfall Minneapolis faced this school year before making large cuts. Some parents are now fighting any talk of school closures.

card image
card image