Factors Impacting the Budget

Factors Impacting This Year's Budget

Factors Impacting This Year's Budget

Widespread reductions not necessary; conservative investments to meet academic and financial sustainability goals recommended

Possible per pupil or special project increases from the legislature

  • This is a funding year for our legislature.
  • School districts typically expect some per pupil increase.
  • Increases for more than 15 years have not met inflation – typically 1%-2%.
  • MPS focusing on increasing special education funding from the legislature.

$30 million increase in referendum dollars

Per promises to stakeholders, dollars targeted for:

  • MPS core priorities of equity, literacy, social and emotional competence, and student support services
  • Creating a sustainable compensation structure, including equitable pay for lowest paid employees
  • Ensuring compliance with laws across the district
  • A comprehensive district design to increase both academic and enrollment long-term

Decreased student enrollment

Student enrollment down across the district and across urban districts nationwide. Several reasons:

  • Competition from charter schools.
  • Fewer students applying for Educational Benefits. MPS then receives fewer dollars that follow students living in poverty – Title I and Compensatory dollars.
  • Reduced live births now and over the next five years.

Need to rebuild fund balance

  • MPS started FY 2018-19 with the first balanced budget in many years.
  • Have begun to establish the fiscal framework to rebuild the fund balance.
  • Expenses will continue to be reduced as possible.
  • Commitment to reach board-approved Fund Balance level (8% of operating expenses) by SY20-21.