Budget reduction and realignment

  • Budget graphicA number of factors converged in early 2024 that led to the need to reduce district expenditures by $26 million. Anoka-Hennepin acted quickly in the spring to plan a two-phased budget reduction and realignment process.

    • Phase 1: $5.1 million in central administration and services were reduced for the 2024-25 budget in an effort to mitigate the impact of additional cuts for the 2025-26 budget. 

    • Phase 2: The district is currently determining a solution to address a $21 million budget reduction gap. Community meetings were held Sept. 25 - Oct. 10 in combination with a feedback process on two recommendations. A final decision is expected in November. 

    Factors impacting the district budget: The elimination of federal pandemic relief funds, higher than budgeted employee contract settlements, the impact of inflation on transportation and other operations, limited new revenue from state and federal sources and new requirements without funding support have developed a need to reduce expenditures by $26 million by the 2025-26 school year.  

    Proposed solutions: Anoka-Hennepin Schools have followed School Board direction to provide a reduction plan that cuts away from the classroom, particularly for the district’s youngest learners. The draft budget solution recommendations impact central services before schools with 53 percent of the reductions taking place at the district office/central services area, and 47 percent impact at the school level. The board is also studying a plan that would make additional central services and administrative cuts but spare reductions in schools allowing community members to decide on that impact through a levy referendum election in the fall of 2025.

    Two options have been proposed for School Board consideration:

    • Option 1: $21 million total reduction.

    • Option 2: Make additional central services/administrative reductions and authorize an operating referendum election in the fall of 2025.

    Looking ahead: Following robust community feedback for an initial draft plan, draft proposals are expected to be shared at the Monday, Oct. 29 school board meeting and eventually adopted at the Monday, November 25 school board meeting. This timeline is required ahead of key planning decisions on student registration and staffing decisions prior to the 2025-26 school year.  

    Provide feedback: School Board expectations provide for a process that encourages robust community and staff input prior to approval of the final recommendation. 

    View the presentation from the Sept. 23 school board meeting and provide your feedback for school board consideration using this online form.

Be informed: Watch the budget presentation, attend a community meeting

Provide feedback

Frequently Asked Questions (FAQs)

  • Does your reduction plan cut administration first, before cutting any classroom teachers?

  • How do you plan to ensure there is transparency for the public in this process?

  • Didn’t the school district receive “historic” funding from the state? Why is this all necessary?

  • Why are you considering cutting teachers at all?

Related news

  • Community review and comment process begins for Phase 2 budget reductions and realignment process

  • District to begin budget reduction and realignment process this spring