(11/06/2024) A convergence of factors combined in early 2024 leading 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 are following 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 school sites. 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.

Note: At the Nov. 4 work session, the School Board did begin discussion on possible options to reduce central administration and some positions funded with one-time, unsustainable funding sources as a possible solution. This option would bypass increases in class size ratios as a solution and would remove the immediate need to commit to a referendum next year as a solution.   

Looking ahead
The School Board is expected to approve a budget reduction and reallocation plan for 2025-26 at the Nov. 25 meeting. This timeline is required ahead of key planning decisions on student registration and staffing decisions prior to the 2025-26 school year.  

Learn more
Visit ahschools.us/budget to find updated progress and plans and a form to provide feedback on the options under consideration.