Saint Paul Public Schools (SPPS) is projecting a $150 million shortfall for next year’s general fund budget (FY25). What percentage of the current FY24 general fund budget does that represent?

The total SPPS general fund budget for FY24 is $801 million. $150 million represents approximately 19% of the current general fund budget.  

What percentage of the SPPS general fund budget is spent on personnel? 

80% of the general fund budget is spent on staff wages and benefits. This is similar to other school districts in Minnesota.

How much does it cost to operate SPPS for one day? (Rounded to the nearest 100,000)

$2.8 million

How many full-time equivalent staff (FTEs) does SPPS have?

SPPS has 6,137 full and part-time, regular and active staff (as of October 31, 2023).

What is the per pupil expense for SPPS?

The most recent data from the 2021-22 school year is $20,195 per pupil. By comparison, the state average is $15,000 per pupil.

How is there a shortfall when the state legislature just invested $2.2 billion in public education?

The increased revenue from the state legislature is a welcome and much-needed investment in our schools. Much of the legislative funding is tied to specific initiatives and must be spent as mandated. 

For example: The state is providing $2 per student/per year for menstrual products and naloxone (for opioid overdose) at schools. This doesn’t cover the full cost of providing these items to students. The remainder of the cost to fully fund this mandate will come from our general fund. The same is true for the new funding for special education and English learners; the new funding will cover some, but not all, of the expenses required to provide these services.

SPPS is receiving $53.8 million in “new” state funding for FY24. At the same time, the district’s investments and offsets this year add up to $88.2 million. This imbalance requires a $34.4 million withdrawal from the fund balance to cover the difference. 

If our expenses are not as high as projected for FY24, the amount SPPS will withdraw from the fund balance will be updated as part of the annual budget revision in spring 2024.  

In years past, SPPS has estimated a shortfall and ended up with a surplus. Why is this year different? 

SPPS has not projected a shortfall this large in the past. The federal ESSER/ARP funds expire in September 2024, which accounts for the majority of the projected shortfall. The other major part of the shortfall is the withdrawal of $34.4 million from the district’s fund balance for FY24. This withdrawal would bring the fund balance just above to the Board-approved minimum of 5%.

If our expenses are not as high as we projected when the FY24 budget was approved in June 2023, the amount SPPS withdraws from the fund balance will be updated accordingly. Any unanticipated revenue will first be used to replenish the fund balance.

The FY24 budget that was approved in June 2023 was based on financial information before the legislative session ended and using projected enrollment. When will the audited report for FY23 that contains updated information be available?

Every year, SPPS creates a revised budget for the current fiscal year, typically in March. The revised budget reflects new information from the time the adopted (original) budget was approved in June. The final audit is due by December 31 each year. At that time, SPPS will be able to share unaudited numbers that reflect the financial performance for FY23. SPPS will update the FY24 (current year) budget in March 2024. By that time, we will also have a very good estimate of what the FY25 budget will look like.

What percentage of SPPS’ general fund budget consists of American Rescue Plan (ARP) resources?

14% ($114 million) of the district’s FY24 general fund budget is from the American Rescue Plan. This one-time federal funding expires in September 2024 and will not be replaced with another funding source. Learn more about how this money is being spent at spps.org/ARP.

With the one-time money ending, how do you prioritize which programs, staff, etc. to sustain with the available money?

SPPS strives to offer the highest quality education possible within our available budget and staffing. Budget priorities have been determined in different ways over the years. This year:

1. We started with gathering our community values. These values will serve as the foundation of how to prioritize our unmandated funds.

2. We will review data around programs and services with a focus on those that have shown progress toward our long-term student outcomes.

3. We will then prioritize those programs and services that: show the highest levels of effectiveness or promise; align with our community values; and fit within our budget parameters. This will determine what we will sustain and how many staff we will need in FY25.

If ARP funds are going away, why are we considering continuing ARP-funded programming beyond FY24?

Some programs that were started using ARP funds have been proven to improve student outcomes. At the same time, there are some long-standing programs that have not made an impact. Because of this, it is important that we fully assess all of our programming to determine what will best meet the needs and values of our community, improve student outcomes and align with our strategic plan. Based on this assessment, combined with our community values, we will determine which programs should continue and what will be discontinued.

Was ARP money spent on things other than physical items or one-time spending?

Yes. SPPS has closely followed the spending guidelines from the federal and state departments of education to help fund programming that addresses a number of issues related to the impact of COVID-19, including mental health and academic support. Approximately 30% of the funds were spent on one-time expenses. View the ARP budget dashboards here: spps.org/Page/45780.

If there are unspent funds from budgeted items in the previous year, what happens to those funds?

Similar to managing a personal and household budget, money that we planned to spend but did not spend stays in the fund balance. Doing so contributes to the fund balance, and promotes financial stability and healthy bond ratings.    

Are there opportunities for the federal or state governments to help reduce the funding gap?

We are not aware of any additional funding opportunities coming from the state or federal government at this time.

Are there limits or constraints that dictate how money can be spent?

Yes. There are a variety of constraints that determine how money can be spent including employee contracts, state statute, mandated services and new legislative requirements, not all of which are funded at the levels needed to cover the associated costs.

The general fund is the most flexible funding source. In the current budget year (FY24), SPPS’ general fund budget is approximately $801 million. Other funds, including the food service fund, community service fund, debt service fund and construction fund, can only be spent on a defined set of expenses. For definitions of each of these funds, please refer to the FY25 Budget Glossary of Terms available at spps.org/fy25budget.

Do my property taxes go to my local school or to the district?

Property taxes are used to fund the district as a whole. Property tax levies are part of the overall district budget and are allocated to schools and programs based on the district’s budget parameters and priorities. Local property taxes fund approximately 20% of SPPS’ annual revenue.

How do we project enrollment each year?

SPPS looks at a variety of data including birth rates, charter school openings or closings, changes in neighborhood demographics (people moving in/out, etc.), and historic enrollment trends to make a projection for the following school year. These projections are typically within 0.5-2% of the actual Oct. 1 enrollment each year.

How many PreK-12 students are enrolled in SPPS (SY23-24 preliminary)?

32,789 is the preliminary PreK-12 enrollment count as of Sept. 22, 2023. The official Oct. 1 count will be available in January 2024.

How does student enrollment impact the budget?

Enrollment is the primary driver of a school district’s budget. Nearly all revenue is linked to enrollment, including state aid and local property taxes. After the official Oct. 1 count is released, the audited budget will reflect actual enrollment. 

What is SPPS doing to combat declining enrollment?

SPPS has several strategies in place to recruit and retain students and families. We are focused on offering high-quality programs and services that meet the needs of our community. We continually solicit input and analyze data to make informed decisions about what influences families to choose and stay in SPPS. 

On average, 60% of school-age St. Paul residents attend Saint Paul Public Schools. 85% of students stay in SPPS from one grade to the next. Other factors that impact enrollment include increased competition from charter and non-public schools, and declining birth rates.

Based on preliminary enrollment data, SPPS has met its goal of stabilizing our enrollment (decrease of 1.5% or less) for the 2023-24 school year. Some of the district’s recruitment and retention efforts include the annual School Choice Fair, School Selection Guide, digital marketing efforts and proactive media outreach. In addition, six schools received dedicated marketing funds to boost their enrollment for the 2024-25 school year.

How will my input be used in the budget decision-making process?

SPPS has collected, and continues to gather and analyze, input from students, families, staff and community members to inform the FY25 budget. Through this process, the SPPS community has identified a set of values (e.g. safety, belonging, culturally responsive schools) that are the most important to them. Where possible, SPPS leaders will make budget decisions that align with these values for the FY25 budget. 

All stakeholders can continue to provide feedback using the FY25 Budget Feedback Form located at spps.org/Domain/20706.

Who is making the final decisions?

The Superintendent and the Senior Executive Leadership Team will make the final FY25 budget decisions in consultation with principals, district leaders and the Board of Education (BOE). Those decisions are then turned into recommendations that are presented to the BOE. The BOE must vote to adopt the budget by June 30, 2024.

What is the timeline for decisions to be made?

A timeline for the FY25 budget process can be found at spps.org/fy25budget.

What is in scope and out of scope for this process?

All programs, partnerships, strategic initiatives and other “commitments” that are not mandated are being evaluated as part of this process. In order to get to a balanced FY25 budget, SPPS will need to discontinue some programs and reduce the number of staff the district employs.

No departments, positions or programs are exempt from being evaluated and considered as potential places to make staffing reductions and reduce costs. This includes district staff and programs. Everything is being evaluated against the community values and data about student outcomes.

We don’t know what impact this will have on our schools at this time. We anticipate that schools will receive their budgets at the end of February. Any staff or program adjustments will be made in accordance with employee contract language. Closing schools is out of scope for this process. 

How have you sought community input, especially from parents and students, on their priorities?

• Student convenings with 8 SPPS high schools (Spring 2023)

• Community conversations with Marnita’s Table (Spring 2023)

• Community values and budget meetings (Fall 2023)

• Staff budget meetings (Fall 2023)

• Values surveys (Families, Staff, 6-12th grade students, Fall 2023)

In total, we have gathered input from over 10,000 stakeholders (10,739). A summary of this engagement is available on the spps.org/fy25budget website.

How will the responses from the values survey be converted into financial direction?

Budgets are a reflection of our community’s values. For example, we know that safety is a top priority across all of our stakeholder groups. That means, if we have to choose between funding security staff or upgrading our phone system, we would choose to fund the security staff. 

In addition to values, we are also digging deeply into our student outcomes so we can prioritize those programs and services that are proven to help our students achieve the long-term outcomes articulated in the SPPS Achieves strategic plan.

It is these two criteria -- values and student outcomes -- coupled with our mandated expenses that will drive the FY25 budget.

Were there listening sessions or phone banks with school staff? 

The community engagement sessions were open to all stakeholders including staff. The staff survey also went to all staff. In addition, principals held budget meetings with their staff to gain a shared understanding of the current budget and what is projected for FY25. The superintendent has a regular schedule of visiting schools and meets with school staff on at least a weekly basis.

What will the process be to ensure that community and staff input will continue to be collected?

The feedback form on the FY25 budget website is one method of collecting feedback. Principals and other district leaders will continue to be part of the decision-making process. We are also committed to providing monthly updates to the community via email, which SPPS families and staff selected as their preferred method of communication in the surveys and engagement sessions.

Will all bargaining groups get a 6% increase in parity with the Superintendency (Unrepresented) group?

The Board of Education approved a one-time 6% wage increase for the Unrepresented group (formerly called the Superintendency) at the Aug. 22, 2023, Board of Education meeting. This decision was based on a comprehensive compensation study conducted by Evergreen Solutions that found this group’s salaries were below market rate in comparison to similar employers in the region. The findings and recommendations can be found in the Aug. 22 Board Book starting on page 163.

The Unrepresented group includes assistant superintendents, division chiefs, department directors and other district administrators. It does not include the Superintendent. This group is not in a union and does not receive annual step increases (raises based on years of service) or lane changes (compensation for additional education). Wages for the Unrepresented group remained flat from 2013-2021, with a cost of living adjustment (COLA) of 1.5% in 2021 and 2022. By contrast, most SPPS employees are eligible for annual step increases in addition to an annual COLA. Licensed staff are also eligible for lane changes for completing additional education. All COLAs must be approved by the Board of Education. 

Does “Administration Support Services” cover everyone at 360 Colborne and 1930 Como that is connected to academics? Does this include Business Office staff, Human Resources, etc.? 

Yes, this includes the majority of SPPS staff at 360 Colborne, 1930 Como (EOS), 1780 W. 7th, etc. This includes the Board of Education, Finance, Human Resources, Communications, Family Engagement, Security, Teaching and Learning, and other department staff, as well as principals. 

The district has a $1 billion budget and has only allocated an additional $17.9 million for ALL employee contracts. How have you settled on $17.9 million for settling all contracts when those contracts last 2-3 years? 

This amount is based on a 3.1% increase in all costs associated with wages and benefits for all employee groups. This allocation will come from the general fund, which is approximately 80% of the FY23 base budget ($580 million for FY24 budget forecast).  

When it states the following: 76% of our expenses go directly to student programs and services, how does this compare to other districts?

To provide high-quality education and related services to all students, SPPS spent on average $20,195 per pupil for SY21-22. The state average is $15,000. This is a balanced approach that aligns with statewide trends and spending patterns. 

Do staff get a say in whether their program or position is cut?

School and department staff will not be making these decisions. Round 1 of the budget engagement included a staff survey and five public meetings held in October and November. If you participated in these activities, your input will be used as part of the decision-making process.

We have committed to sharing monthly FY25 budget updates with the community. Community members including staff can submit feedback and additional questions via the feedback form at spps.org/fy25budget. We will continue to update the community as data is collected and decisions are made.

When will program/position decisions be made?

We anticipate that schools will receive their budgets by March 2024. Any staff reductions must be made in accordance with contract language. A timeline of budget decisions can be found at spps.org/fy25budget.

Will the priorities collected from the various stakeholders be shared?

Yes, a summary of the community values was shared with all staff, families and the Board of Education on November 30, 2023, and can also be found here.