NEW HOPE, Minn. — The Robbinsdale Area School District is facing major financial challenges, as budget shortfalls are expected to reach multiple millions of dollars for the 2025-2026 fiscal year. The district announced that for that fiscal year, they're expecting a budget shortfall of $19-21 million.
"Our financial situation is not as positive as we had planned," district Chief Financial Officer Kristen Hoheisel said.
Hoheisel anticipates the district to enter Statutory Operating Debt at the end of the 2024-2025 fiscal year. That means the district will need to submit a corrective financial plan to the Minnesota Department of Education.
That status is triggered when the district's year-end deficit is more than 2.5% of its annual operating expenses.
District Superintendent Teri Staloch says part of the shortfall comes from them not cutting enough. They were set to cut $17.4 million for the current fiscal year – instead cutting much less.
"The amount we are actualizing out of that reduction is actually $3.4 million," Staloch said.
In addition to that, district leaders say their current situation comes from "an error in the implementation of the budget process." They say nearly $20 million dollars, which comes from compensatory funding, was counted twice, leading the district to over-state their available resources.
Both Hoheisel and Staloch say they don't know the reason why that money was counted twice, saying that happened before they were in the district.
Staloch says this will lead to more cuts and changes to the district.
"It's going to be inevitable that staff reductions are made," Staloch said.
She also says they'll look at academic programs and potentially closing buildings.
There's a town hall to address the state of the budget with district leaders Wednesday, November 20, at 6:30 p.m. That town hall will be held at Cooper High School.