A Feb. 10 Minneapolis Public Schools board meeting brought news that the projected budget deficit for 2026-2027 had worsened to over $50 million, deepening from an expected $30 million deficit.
Minneapolis Public Schools has consistently struggled to keep expenditures within the allotment of state and local funds. The district has known that it is not financially stable since 2017. Minneapolis Public Schools currently has a $75 million budget deficit for the 25-26 year, which was, in part, predicted in a 2022 district memo that gave a comprehensive financial assessment to the district. The district, which has experienced decreasing enrollment, found in 2024 that 52 percent of all school buildings were considered underutilized.
The district underwent a round of budget cuts (and benefited from new tax levies) that lightened the 26-27 deficit to $30 million. Additionally, Minneapolis has continued to discuss the physical transformation of the district via the consolidation of school buildings, a discussion which began in 2023 and has yet to see concrete action.
Minneapolis Public Schools’ financial department appears to have significant personnel and culture issues. From the Minnesota Star Tribune:
Documents obtained by the Minnesota Star Tribune in a public data request also show the district ordered an outside review of the finance division that described it as being at a “crisis point” with significant employee turnover — reportedly more than 50% over the past two years — and poor morale.
The district’s chief financial officer, Ibrahima Diop, left his annual $221,408 position on Jan. 30. He had been placed on administrative leave in early January along with two other administrative officials. Diop had previously been reprimanded and then placed under “escalated disciplinary action” by Superintendent Lisa Sayles-Adams. Local news outlet Alpha News has previously publicly credited Diop with what they term “questionable multi-million dollar contracts he signed with transportation companies.”
Diop’s May 2025 reprimand from Superintendent Sayles-Adams accuses him of a Data Practices Act violation. A second reprimand accuses him of insubordination for failing to meet deadlines.
Milwaukee Public School District was in the process of welcoming him as its deputy superintendent of operations, but rescinded their offer after Diop’s administrative leave from Minneapolis Public Schools became known.
After Diop’s exit, the public side of the budget process was taken up by senior executive officer Ryan Strack.
In the Feb. 10 board meeting, Strack, who presented the budget presentation earlier than in previous years, argued that much of the district’s financial woes are due to higher benefit costs as a part of Minneapolis’ Collective Bargaining Agreement, antiquated funding practices connected with charter schools and open enrollment, and long-standing issues with Minnesota’s general education funding formulas. The presentation noted that
Had the general education formula allowance kept up with inflation every year since 2003, as is now the case moving forward, MPS would have $50 million more in funding this year[.] The underfunding of Special Education services alone is approximately $43 million for MPS and the federal government has never come close to meeting its commitment on Special Education funding[.]
Strack continuously emphasized that funding projections are fluid, and all budget projections are subject to change.
The presentation also suggested that, in addition to cutting costs, the district continue to “promote our schools and vision as part of our work to increase enrollment.” Higher enrollment would guarantee the district more funding, alleviating some budget concerns.
If the district can fast-track the building reallocation process, they may also be able to cut major costs associated with underutilized buildings.
The budget is finalized in June.
It is to be hoped that the district can find a budget solution by then, so that the students of Minneapolis don’t suffer further consequences.
