Declining school enrollment is causing great budget pressures on many school districts now and is likely to challenge even more districts in the future as the school population is projected to drop statewide over the coming years.
The largest source of funds distributed to school districts is the foundation grant (aka formula allowance) multiplied by the district’s Adjusted Pupil Units (i.e., number of students enrolled). The “adjustments” to the Average Dailly Membership are weightings based on grade level (with secondary students weighted higher than elementary students to account for higher costs) and adjustments to account for students who move between districts via open enrollment (school choice).
Student Enrollment Declining in Prior Lake-Savage (ISD 179), Shakopee (ISD 720), Jordan (ISD 717)
The district’s total foundation grant is primarily based on the current year’s student count, but Minnesota also uses a “marginal cost” system to help districts facing declining enrollment.
• Growing Districts: Funding is based on 100% of the current year’s weighted count.
• Declining Districts: To prevent a sudden budget “cliff” when students leave, the state uses a “marginal” count. Historically, this has been a mix of 77% of the current year and 23% of the prior year.
Based on my 10+ years’ experience as a School Business Manager (aka Finance Director or Chief Financial Officer), I will propose legislation once elected to use a three-year average instead of only the one prior year to further protect declining enrollment districts.
Districts have a hard time cutting costs with much of their costs actually increasing despite dropping enrollment. Some are fixed costs such as busing, buildings and maintenance. Perhaps as much as 80-85% are wages and benefits subject to collective bargaining. Adjustments often take time in the planning and implementation. What’s worse, the job gets harder and harder as successive years of declining enrollment results in loss of good options, then bad options resulting in only ugly options left.
Our kids’ education is too important to be left with rushed decisions which take away learning opportunities our kids need.
I will propose more protections for declining enrollment in our school districts once elected to serve in the Minnesota State Senate. To get involved with this effort, please don’t hesitate to reach out to me. I look forward to meeting you!
