Edina Schools approves budgets amid state funding uncertainty
The Edina Public Schools Board unanimously approved both its revised 2023 budget and preliminary 2024 budget on June 20, moving forward with major construction projects and new programs while taking a cautious approach to unexpected state funding due to unclear new mandates.
The school board voted 7-0 to approve the revised fiscal year 2023 budget, which showed significant improvement from earlier projections. The general fund deficit shrank to $895,000 from an expected $1.7 million, thanks to 66 additional students enrolling in the district and a $700,000 boost in state aid. The budget also includes $1.1 million in restructured debt for technology and school bus purchases, plus a $14.2 million bond for constructing an addition to Countryside Elementary, which will add a dual language immersion program.
The board also unanimously approved the preliminary 2024 budget, which eliminates a projected $4 million deficit through cost-saving measures and conservative planning. The district expects to increase its general fund balance by $5 million, bringing its unassigned fund balance to 8.7%—above the required 6% minimum. Director Mark Woodard noted that over 80 percent of district spending goes directly to student services.
However, board members emphasized caution about the new state funding. Chair Allenberg described the budget approach as "putting a lot of money in a savings account until we have a better idea of what our requirements are from the state." The 2023 legislative session brought increased funding for special education and English language learners, but also introduced unfunded mandates that could cost the district significantly. For example, new unemployment benefits for school-year employees could cost between $1.2 million if all eligible workers claim the benefit.
The district also approved universal free meals for all students starting next year, with the state covering the difference between federal reimbursement rates for paid and free meals. The Food Service fund is projected to break even despite increased participation. Additionally, the board approved $6.3 million in transfers from the general fund to support major construction projects, including a high school project exceeding $2 million breaking ground this summer and bus garage improvements. Edina Schools is one of only three districts in Minnesota to hold a AAA bond rating.
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Votes (2)
Approval of Revised Budget for Fiscal Year 2023
Dissent: None
Moved by Unknown [0:41] · Seconded by Unknown [0:45]
Director Mark Woodard presented the revised budget, noting an improved general fund deficit of $895,000 from a projected $1.7 million, attributed to 66 additional pupil units and a $700,000 increase in state aid. The budget also reflected restructured debt for $1.1 million in technology and school bus purchases and a $14.2 million bond issuance for Countryside Elementary construction. The ending unassigned fund balance was estimated at 6.88%.
Approval of Preliminary Budget for Fiscal Year 2024
Dissent: None
Moved by Unknown [3:35] · Seconded by Unknown [3:36]
Director Mark Woodard presented the preliminary FY2024 budget, highlighting the elimination of a $4 million deficit through cost-saving measures, conservative budgeting for the 2023 legislative session, and significant increases in state aid for special education, basic education, and English language learners. The budget projects a 5 million dollar increase to the general fund balance, bringing the unassigned fund balance to 8.7%, above the 6% minimum. The report also detailed the health of the Food Service, Community Services, Building Construction, and Debt Service funds, including the implementation of universal free meals and the district's AAA bond rating. Board members emphasized the importance of rebuilding fund balances and discussed the impact of new state mandates on future district finances, necessitating a cautious approach to using the additional state funds.
Notable Quotes (5)
when you look at over 80 almost 80.5 percent of all funds that are expended within the district are all for actual pupil Services
the way it works is when a student actually goes through the point of sale system and receives a meal that is considered reimbursable... the state is now going to do is they're going to pay us a difference between what the federal government is paying for paid students and what the federal government is paying for free and reduced students
the other financing uses so that's a a depletion of fund balance that is not considered an expenditure for example we are sending 6.337 million dollars from the general fund to the building construction fund that's not really an expense however it is a reduction of fund balance all else being equal and so since it's not categorized as an expenditure it needs to be classified in another way but it is a reduction to the fund balance
if I could describe this budget I would describe it as putting a lot of money in a savings account until we have a better idea of what our requirements are um from the state and what they are going to ask us to do with this money
the school district has between 250 to 300 employees that would be eligible for this funding and where all of those individuals to claim their benefit that they have a right to now that would cost the district about 1.2 million dollars
Ordinances & Resolutions (9)
The updated budget for the current fiscal year, reflecting adjustments from original projections due to various factors.
The proposed budget for the upcoming fiscal year, detailing revenues, expenditures, and fund balances across all district funds.
A document providing a high-level overview of the budget, including guiding principles and financial figures.
The organization that establishes accounting and financial reporting standards for U.S. state and local governments, which the district must adhere to.
A section of the budget packet detailing the breakdown of program descriptions and dollars spent, highlighting pupil services.
A section of the budget packet used for clarifying line items such as 'other expenditures' and 'other financing uses'.
Legislation from the 2023 session that includes appropriations for media specialists, additional counselors, or psychologists.
A recording summarizing the outcomes and implications of the Legislative Advisory Committee's work.
A survey conducted by the Association of Metropolitan School Districts regarding the financial impacts of new state mandates.
Source document
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Other Topics from This Document
Fiscal Year 2024 Preliminary Budget Approval
Impact of 2023 Legislative Session on District Finances
School Food Service and Universal Free Meals
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