Balanced Budget Presented to School Board: Leader Letter

Editor's Note: The following is another Leader Letter from Minneapolis Public Schools Superintendent Dr. Bernadeia H. Johnson.

June 13, 2013

Dear MPS Partners and Friends, 

After months of making difficult decisions and robust budget cuts, we are pleased to present a balanced budget for fiscal year 2014 (FY14), which runs July 1, 2013, to June 30, 2014. The preliminary budget was presented to the Minneapolis Board of Education this week and they are expected to adopt it at the June 25 meeting. We continue to invest our resources in our core strategies that support our vision of ensuring that all Minneapolis Public Schools (MPS) students graduate from high school prepared for college, career and life.   

I would like to recognize my leadership team, especially Chief Financial Officer Robert Doty, for their diligence in balancing the budget. We began the FY14 budget process with the goal of adopting a structurally balanced budget that would align with our operational and strategic priorities and keep reductions as far from the classroom as possible. The FY14 budget is balanced without drawing from our reserve fund, also known as the fund balance.

While our work to structurally balance the FY14 budget provides us with a strong foundation for future years, there are factors that may still affect the final outcomes. Contract negotiations have started and as a result, labor cost projections may change. The preliminary budget can be found here and school finance information can be found here.

The primary reductions in the FY14 budget come from cuts to central office departments. These reductions were examined critically to understand the effects for students, schools and families. Direct allocations to central office departments decreased by $19.7 million, while direct allocations to schools increased by $2.9 million. Department allocations to schools increased by $5.9 million and department allocations providing direct services to students and schools increased by $865,000. For comparison, in FY13, 56 percent of the budget was in direct allocations to schools while in FY14, 58 percent of the budget is in direct allocations to schools.

We are already looking ahead to budget planning for next fiscal year. We have formed a Citizen’s Budget Advisory to help inform the next cycle and we look forward to continuing to work with our schools, departments, community members and stakeholders to support student achievement through stable funding systems.

As stewards of public funds, we must make tough choices in the best interests of our students. I would like to thank all of you for the feedback and passion you have all brought to this important issue.

Sincerely,
 
Bernadeia H. Johnson, Ed.D.
Superintendent of Schools

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Related:

• Angry Parents, School Board Get Look at Major Schools Cuts
• What Is the District Cutting From Neighborhood Schools?
• Superintendent Johnson: Tough Decisions, Strategic Cuts Produced a Balanced Budget
• Where Does Minneapolis Get its Public School Funds?
• Resource: Understanding Property Tax Levies
• Resource: Minneapolis Schools Budget Challenges and Risks
• Resource: What is a District's 'General Fund' Balance?