Minneapolis schools find $21M in new funding, budget gap shrinks

Minneapolis Public Schools is set to receive a boost in special education funding after a recent review and changes made to how it handles expenses and reimbursements.

MPS special education funding review leads to increased revenue

What we know:

The district says superintendent Dr. Sayles-Adams asked the Council of Great City Schools to review the district’s special education department, which led to recommendations for organizational changes and better expense coding.

After working with the Center for Effective School Operations since January 2026, the district says it updated how it codes and categorizes expenses, which determines state revenue for the following year.

Dig deeper:

The district says it expects to receive about $10.7 million more in special education funding for the current year and about $10.8 million more for next year than previously budgeted.

Why you should care:

The extra funding will help restore some previously planned budget cuts and reduce the district’s budget gap for the 2026-27 school year to $39.7 million.

The district says the changes could mean less general fund money will be needed to cover special education costs, allowing more resources to be directed elsewhere.

What's next:

The district says it is developing recommendations for how to use the new funds, focusing on positions that directly support students in racially identifiable elementary and secondary schools, transitional funding for the Adult Education program, additional staff at Longfellow High School and growing insurance needs.

The recommendations will be presented to the school board’s finance committee on May 5.

The Source: Information provided by Minneapolis Public Schools.

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