District reveals $20 million budget error two weeks after levy referendum passes

Two weeks after parents and taxpayers overwhelmingly approved a $70 million levy referendum, they were blindsided by news of a $20 million budgeting error certain to result in deep cuts in Robbinsdale Area Schools. The stunning revelation left the suburban Minneapolis district scrambling to respond to parents reeling over the potential impact on learning, according to MPR.

Administrators at Robbinsdale Area Schools said they will be making budget cuts and reducing staff after an error left the district with a $20 million shortfall. The school district held a town hall meeting Wednesday night to discuss its budget.

Administrators at the Twin Cities-area district say staff counted a fund twice during the budget process, making it look like the district had more money than it does. School officials declined to comment specifically on how the budget error occurred and who caused it.

The budgeting error amounts to ten percent of the district’s $200 million annual budget. On top of that, Robbinsdale school officials will manage to implement just a fraction of some $17 million in cuts already factored into the district budget this year. That reality means the district will likely fall into statutory debt.

[Chief Financial Officer Kristen] Hoheisel started at the school district in August. She told town hall attendees she first noticed something was wrong in September, but didn’t feel confident going public with the numbers until they had more information. The public was made aware of the error at a school board meeting Monday, a little less than two weeks after voters passed a referendum that increased funding to the school district.

“So it was almost immediate, after the start of school, where it… it doesn’t seem right, it doesn’t feel right. We knew there was an issue,” she said. “We knew it was probably pretty large. It’s just really hard when you’re still deep diving to go out and say we’re deep diving.”

The Robbinsdale district has experienced a steady decline in students and test scores in recent years. Also a significant turnover in management and staff. Fox 9 notes some parents at the public meeting worried the financial flap will only make matters worse.

Some community members gave emotional testimony.

“I choose this district every day and trust me, it’s not always easy,” said a parent. “A miscalculation of $20 million?”

“We’re here because we’re not happy. All of this going on is fiscal mismanagement,” said a community member.

Many questions remain to be addressed over how such an enormous financial miscalculation happened and what comes next. The list includes budget cuts, probable building closures and believe it or not, potentially even another referendum.

The school district has seen a lot of administrative turnover. Joan Evans, whose children attended Robbinsdale schools, said the district had a crisis of confidence.

“While I love the enthusiasm and the positivity and yes, let’s try to fix this and use it as an opportunity, there’s some part of me going, ‘oh, I’ve heard this before.’” Evans said.