Fiscal Year 2025 Budget Planning
Edina Public Schools is planning the upcoming school year's budget. Next year, we will be implementing cost containment measures totaling $3.62 million (2.25%), which will include strategies aimed at generating additional revenue.
- Increased expenses stemming from high inflation and rising labor costs are surpassing the annual funding increments provided by the state. This dynamic further exacerbates the funding gap, as illustrated in the "General Education Formula Allowance" chart below.
- Despite the historic funding increase specified in the state’s 2023 education bill, the state's financial support is losing ground to inflation, resulting in a widening—rather than narrowing—gap in funding.
- Total compensation for all staff in the district is expected to exceed original estimates by about $4.5 to $5.0 million. This increase will only compound in future years, which means the district will need to immediately take measures to contain its budget and ensure long-term sustainability.
Strong Fiscal Management
Edina Public Schools has strong fiscal management with a coveted Moody’s Aaa credit rating. We are one of just three districts in Minnesota and approximately 100 out of 13,000+ nationwide that enjoy this distinction. This recognition is not only evidence of financial responsibility, but a top-tier credit rating also allows us to get better rates, saving us money.
- What percentage of the district’s budget is $3.62 million?
- Should we expect this shortfall every year moving forward?
- What is the fund balance and why is it not used to manage the projected shortfall?
- Why is Edina Public School’s Aaa (or “triple A”) credit rating important and what would be the consequence of that rating being downgraded?
- What do we prioritize as a district? (Our funding should match these priorities.)
- How can we make sure that we are able to retain high-quality teachers?
- How does open enrollment impact our budget?
- What cost containment measures did the district make last year?