St. Paul Public Schools balances budget, accepts teacher cuts

Saint Paul Public School District, the second largest district in the state, has just passed a new budget that narrowly avoids any budget shortfalls.

It hasn’t always been sunshine and roses lately for the district. Faced with a similar demographic decline as other Minnesota districts, Saint Paul has experienced over a 16.4 percent enrollment decline in the last 10 years. (Only 60 percent of school age Saint Paul residents attend a district school.) The district had a $107.7 million shortfall for FY 25 and experienced a $51.1 million shortfall for FY 26, which was largely covered by reserve funds.

District leaders asked for a referendum in order to add another stream of cash. The referendum passed with a two-thirds majority, infusing $37 million a year — about $1,073 in new revenue per student, with the median homeowner contributing $309 extra per year — and avoiding the bulk of budget woes.

Even after the referendum, the district faced a budget shortfall of $14.35 million for FY 27, representing 1.7 percent of the district’s budget.

Yet, this year, district leaders have balanced the budget for FY 27, which includes $1,064,333,209 in proposed expenditures. The budget, passed last Tuesday, includes $14.35 million in budget cuts.

What was prioritized and why?

While making the cuts, Saint Paul school board members held three untouchable budget parameters: 1) a district commitment to full-day pre-K, 2) retaining at least 95 percent of instructional support services, and 3) demonstrating a continued commitment to language and culture programs. To reflect these priorities, the final budget will cut funds elsewhere rather than touch pre-K, support services, or language and culture programs.

The primary slashed line item, representing $9.4 million, is that of employee salaries. About 90 full-time district employees could lose their jobs. More than a third will be teachers or licensed staff, in order to realign staffing numbers with diminished enrollment. Additionally, 25 district staff will be reduced, representing an extra $3.06 million.

It’s always a shame to see disruption that impacts human lives, but the Saint Paul school board is correct to understand that budgets aren’t playthings. Declining enrollment means that schools must downsize.

There are several reasons that the district may have chosen traditional K-12 teacher salaries to be the primary budget line item cut.

The rise of school choice options, like open enrollment and charter schools, have allowed 40 percent of school age Saint Paul residents to choose to attend a school outside the district. Of those remaining, many are minorities — about 27 percent are Asian, 24 percent black, 22 percent white, and 15 percent Hispanic. Almost one in three are English learners. Saint Paul’s budget parameter to demonstrate a “continued commitment to language and culture programs” is a competitive bid to keep remaining students in the district to attend programs tailor-made for their interests, like one new Afrocentric program replacing an IB curriculum at a struggling elementary school.

In addition, the board’s stated financial commitment to full-day pre-K also diverts resources away from traditional K-12 instructors. Similarly to the prioritization of competitive language and culture programs, full-day pre-K acts as a feeder program into traditional K-12 education. It’s a competitive way for the district to attract families.

There are less glamorous reasons the cut may have been made. Unfortunately, teacher salaries in their current form are institutionally unwieldy and pricey. Union contracts don’t allow for merit-based pay or differentiated pay, but mandate a strict “step and lane” salary schedule that requires all employees of the same education level and years of teaching to take home the same salaries. (The average St. Paul teacher salary was $87,250 during the 2022-23 school year, according to data from the Minnesota Professional Educator Licensing and Standards Board.)

At some point, especially when a district is downsizing, the lack of budget flexibility means that districts drop teachers completely instead of transitioning them to part-time or lower-paying positions.

There are other strains on the district’s finances. Next year, the Saint Paul school district will spend $1.4 million on paid family and medical leave (PFML). As I have written previously, the great-on-paper paid leave policy lacks essential state support or carveouts related to school districts. Districts need the state to either fund the new PFML mandate or create a more flexible version of the program that does not impose such high structural hardships on school districts.

Looking Forward

Setting aside the nitty-gritty budget considerations, the Saint Paul school board should be applauded for successfully passing a balanced budget. Their twin district across the river, Minneapolis, has struggled for years to achieve financial solvency, despite new levies and continually fresh faces in leadership. Financial stability is a fundamental part of strong district governance. It’s good to hear that the students of Saint Paul will be able to experience it.