The Anoka-Hennepin School Board endorsed a $26 million budget reduction and reallocation plan at its November 25 meeting, a decision that completes a process that unfolded over the past several months and allows planning for the 2025-26 school year to remain on schedule. 

Three proposals were on the agenda for consideration. After recommendations one and two along with modifications to proposals were considered, the board voted unanimously in support of the Superintendent’s recommendation number 3. 

By the numbers: The School Board action wraps Phase 2 of the Budget Reduction and Realignment Plan, reducing a total of $14.14 million in district administration and central services by reducing approximately 200 positions.

• Phase 1: $5.1 million reduction in district and central office/services effective July 1, 2024.

• Phase 2: $9.04 million reduction in district and central office/services effective July 1, 2025. 

  • No reductions to teachers or instructional staff at school sites for 2025-26.

  • One-time use of district fund balance and reduction of $5 million in strategic investments to reach the budget reduction and reallocation goal. 

  • No requirement to pursue a referendum election.

Overview of Option 3:

District administration and central services reduction: $6,121,164
202 positions impacted in buildings and grounds, business services, communication and public relations, community education, human resources, research evaluation and testing, special education, student services, technology and information systems, and transportation. 

This includes a 45 position reduction and realignment of the district senior leadership team and curriculum departments, reducing the superintendent’s cabinet from 11 positions to five and impacting the following positions:

• eliminating associate superintendents, chief technology and information officer, director of elementary schools, directors of special education, and directors of curriculum; 

• realigning the executive director of community education and government relations, executive director of communications and public relations, executive director of research evaluation and testing, and director of enterprise technology; 

• adding a deputy superintendent, two assistant superintendents, executive director of learning and achievement, executive director of student support, and director of special education. 

In addition, the plan also replaces the elementary and secondary curriculum, instruction and assessment department; and the department overseeing state and federal programs with a new Learning and Assessment Department, replacing 20 Teaching and Learning Specialists with 10 coordinators and realigning clerical staff.

Reallocations and revenue increases: $2,920,000
The reallocation of positions from the general fund that include technology, community education and child nutrition to other revenue streams along with a recent change in state funding formulas provides $2 million in new student support aid to maintain positions

Phase 1 reductions: $5,100,000
Between February and April 2024, a plan to adjust $5.1 million from central office functions and district administration which included elimination of 40 positions; the realignment of nearly eight full-time positions to other funding sources; and operations reductions of $1.1 million in areas such as transportation and district technology. This reduction was made prior to the 2024-25 school year and incorporated into the current year budget. 

One-time use of district fund balance reserve
Option 3 includes the elimination of $5 million in strategic investments in the 2026-27 school year and merges in the one-time use of additional fund balance reserves to reach the $26 million budget reduction and reallocation goal. This plan maintains the district fund balance at 8% of general fund expenditures or above, a position that maintains the district’s strong financial position.  

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 presented a need to reduce expenditures by $26 million by the 2025-26 school year.   

Learn more
Visit ahschools.us/budget to review planning documents and presentations included in the budget reduction and reallocation process.