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SoWashCo Schools: Understanding School Funding in Minnesota
Woodbury City CouncilWednesday, May 14, 2025
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Transcript
[0:00] After headlines across Minnesota
[0:02] declared record school
funding in 2023,
[0:05] you may be asking yourself,
why are so many school
[0:08] districts making budget cuts
[0:10] and going to voters
for more funding?
[0:13] Here are the top reasons
Minnesota schools
[0:16] are struggling to balance budgets.
[0:19] Number one, inflation.
[0:21] Families aren't the only ones
feeling the impact
[0:24] of rising costs.
[0:25] For school districts,
the costs of labor,
[0:28] health insurance,
property insurance and school
[0:30] bus transportation
continue to rise.
[0:34] The 2023
inflationary increase
[0:36] to the general education
formula is a step forward,
[0:39] but it doesn't make up
for decades of underfunding
[0:42] and failing to keep up with
rising inflationary costs.
[0:47] Number two, unfunded
and underfunded mandates
[0:51] from the state.
[0:52] When it comes to
some of the most
[0:53] costly things
schools have to pay for,
[0:56] it's the state legislature,
[0:57] not the local school board
who makes these decisions.
[1:01] From implementing
new instructional strategies,
[1:04] to increasing
curricular requirements,
[1:06] to providing unemployment
benefits, there are decisions
[1:09] made at the state level that
local districts must follow.
[1:13] While the state may offer
one-time funds
[1:16] to help pay
for some new requirements,
[1:18] the ongoing costs are often
[1:20] the school
district's responsibility.
[1:23] And number three,
[1:24] the changing role of schools
in our communities.
[1:28] The needs of students
are different than they were
[1:30] 10, 20 or 30 plus years ago.
[1:33] From mental health support
for students, specialized
[1:36] learning assistance, family
resources and career programs
[1:40] to help meet workforce
needs, schools have taken on
[1:43] additional responsibilities
to meet
[1:45] the needs of their students
and community.
[1:48] When you add rising
safety needs, aging
[1:51] buildings and technology,
and declining birth rates,
[1:54] it's clear why Minnesota
[1:56] districts struggle
to balance their budgets.
[1:59] School funding is complex,
[2:02] with the majority
[2:03] of funding coming
[2:04] through the state in the form
of general education aid.
[2:07] Schools also receive funds
for specific categories
[2:10] that can only be spent
on certain items.
[2:13] Additional needs are then
covered by property taxes.
[2:18] In other words, just because
the state is providing us
[2:21] with more dollars
doesn't mean
[2:22] we can use those dollars
wherever we like.
[2:25] Each year,
we tackle the challenge
[2:27] of balancing
[2:28] these funding sources
with our increasing expenses
[2:31] to build an effective budget
that meets student needs.
[2:35] When our student needs exceeds
[2:37] state and local funding,
we may seek
[2:39] additional support
through a referendum.
[2:43] As you can see,
there's more to the story
[2:45] beyond headlines of schools
receiving record funding:
[2:48] inflation, unfunded mandates
and a changing role
[2:52] for schools.
[2:54] Funding schools
is an investment
[2:56] in our students, community,
and future.
[2:59] Please reach out
to your elected officials
[3:01] and share your story
[3:03] so they can help
do their part
[3:04] to make sure our students
and our schools are receiving
[3:08] the resources
they need for success.
[3:12] Visit our website to learn more.