April 28 Finance Meeting
Board members present at the April 28 Finance Committee were Committee Chair Abdul Abdi, Joyner Emerick, Chair Colin Beachy, Vice-Chair Kim Ellison, and Student Representative Zion Webster. The meeting began with the district update that the projected $50 million deficit for ‘26-’27 has now been decreased to $39.7 million, due to revenue generated from better/correct coding of SPED costs. Specifically, $10.7 million will be added back into the budget for this year, while $10.8 million will be added back next year. This will allow the following to be added back into next year’s budget:
Student support positions
Money towards Fund 4 for Adult Ed
Additional funding for Longfellow
Money to cover insurance expenses
The additional money for this year’s budget will cover a projected $1.9 million that will need to be drawn from the general fund to cover the negative balance from the food service fund that was created during Operation Metro Surge. A special finance committee session was called for May 5 to determine how this new revenue will affect the FY27 budget.
We were given a run-down of SPED funding, which is detailed in the presentation slides. An extended presentation on the district’s fund balance followed, ostensibly because the district knows they will get pushback on keeping theirs at current levels, despite the budget deficit. The Corrective Action Plan for FY25 Audit Findings was the first time I had personally heard anyone in the district directly address the many problems in the MPS finance department, and what they plan to do about it. Although the solutions sounded convincing, it was alarming to hear all board members simply praising the course correction, rather than also inquiring about the department culture and leadership that has gotten us here and eroded public trust in allocation of public monies.
If the state legislature passes the compensatory revenue bill this session, MPS would receive an additional $2.1 million. “Currently, from where we’re sitting, I don’t think we have high confidence that any education funding will be passed this session,” said MPS Senior Executive Officer Ryan Strack. The district is apparently working to change a state law that dictates where they can move and allocate operating capital revenue.