St. Paul school board approves next $1B budget, explores referendum for shortfall

St. Paul Public Schools approve $1 billion budget

St. Paul Public Schools are finding ways to cover the $51.1 million budget shortfall in the 2026 fiscal year. FOX 9's Soyoung Kim has the full report.

ST. PAUL, Minn. (FOX 9) - St. Paul Public School (SPPS) leaders said they plan to tap into reserves, make some cuts, and are exploring a referendum to cover the $51.1 million budget shortfall in 2026.

Expenses outpacing revenue

By the numbers:

District leaders said the fund balance will be used to cover $35.5 million and the remaining $15.6 million will come from reductions and new revenue. According to the budget plan, over 70% of the cuts will be made in the central office to minimize the impact in classrooms, while some programs are still on the chopping block.

For that new revenue, SPPS is talking about taking it to voters. Leadership has started the referendum process. The first step – underway now  –  is a community survey to get a better sense of support and priorities.

The backstory:

The district said voters passed the last three referenda. The most recent one was in 2018. 

What they're saying:

Superintendent Dr. Stacie Stanley said the reality is inflation and operating costs have outpaced funding for years. Stanley said a November referendum would be the main channel to produce new revenue. If not, the district will likely face deeper cuts the following year.

"[It] would just really cause us to have to go deep into our programming for services for students that offer them amazing opportunities," said Dr. Stacie Stanley, Superintendent of Saint Paul Public Schools. "Studies have shown years over years throughout many decades that a strong prosperous school system yields a strong prosperous community."

What's next:

Stanley said the next step after analyzing the community survey will be to present the proposed ballot language to the board in July.