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Fiscal Year 2025 Budget Planning

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School Board Approves 2024-2025 Budget

On March 4, 2024, the Edina School Board voted unanimously to approve option A-1 cost containment that would close a budget gap in the 2024-2025 fiscal year. The board's decision provides short-term financial stability and ensures our district sustains its excellent programs and services, while also adhering to board fund balance policy. Approval of the board's proposed option A-1 will delay implementing a portion of the measures directly affecting school staffing with the exception of small reductions in media specialists (1.5 FTE) and a nurse (1 FTE). The board voted to sustain $800,000 of our debt through a capital note and took action on the remaining $2.8 million budget reduction, reallocation, and revenue generation items proposed through this process. 

This decision allows the board more time to explore revenue generation possibilities and evaluate other cost containment strategies and financial levers available to the district. However, it's crucial to understand that this delay does not negate the necessity of implementing cost containment measures in the near future. The gap will remain unless state funding increases, and will continue to grow each year due to interest on the capital loan and rising labor wages and benefits outlined in contractual agreements.

Following this critical decision, the district is now engaged in formal budgeting activities with school sites and departments, staffing, and posting of authorized vacant positions. Edina Public Schools will also continue ongoing research and discussion with its board, staff, parents, and community about its budget gap.

Read Superintendent Dr. Stacie Stanley's March 5 message

FY25 Cost Containment Chart

Why did Edina Public Schools have a $3.62 million (2.25%) budget gap?

  • 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 immediately took measures to contain its budget and ensure long-term sustainability. 
  • The Association of Metropolitan School Districts (AMSD) announced on March 4, 2024 that more than 70 percent of member districts are collectively facing over $300 million in budget shortfalls in the upcoming school year.
state funding compared to inflation AMSD chart
Moody's AAA Rating image

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.

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Final Cost Containment Recommendations
First page of the PDF file: File_CostContainment-FiscalYear2025
Feb. 12, 2024 School Board Presentation
Feb. 12, 2024 Preliminary Cost Containment Recommendation School Board Presentation
Preliminary Cost Containment Recommendations
Preliminary Cost Containment Recommendations