Robbinsdale schools budget deficit will surpass $19M in 2025-26

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Robbinsdale Area Schools is facing an anticipated budget shortfall of $19-21 million in 2025-26 due to a budgeting error that counted available revenue twice.

ROBBINSDALE, Minn. (FOX 9) - Officials with Robbinsdale Area Schools say the district is facing an anticipated budget shortfall of $19-21 million in fiscal year 2025-26 due to a budgeting error that counted available revenue twice.

What we know

Budget details were made public at a school board meeting held on Nov. 18 that outlined the district’s financial challenges ahead.

Robbinsdale Area Schools Chief Financial Officer Kristen Hoheisel says the district is projected to cross the statutory operating debt threshold at the end of the 2024-25 fiscal year.

Statutory operating debt is a fiscal status defined in state law as when a school district’s year-end deficit exceeds 2.5% of its annual operating expenses. Once reached, the process requires the district to submit a corrective financial plan to the Minnesota Department of Education (MDE).

"This is a pivotal moment for our district," Hoheisel said in a statement provided to media.

How it happened

According to a press release, the primary culprit behind the district’s debt was only $3.2 million of the $17.4 million in proposed cuts coming to fruition as part of overstated revenue, resulting in millions in additional deficit spending.

"This situation stems from an error in implementation of the budget process," Hoheisel said in a statement. "Our total revenues amount to roughly $200 million, which includes $180 million in general revenues and about $20 million in compensatory funding. However, in the implementation of the budget process, the compensatory funding was included in the $200 million revenue assumption and then added again separately, effectively counting it twice. This error led us to over-state our available resources."

Looking ahead

In an effort to be transparent with the public, officials with the school say they will hold community engagement meetings in the months ahead.

"Robbinsdale’s commitment to our students and community remains unwavering," said Superintendent Dr. Teri Staloch in a statement. "The work is just beginning, and we’re inviting the community to help shape a future that is both resilient and inspiring."

A state of the budget town hall is scheduled from 6:30 to 8 p.m. on Nov. 20 at Cooper High School.