Fiscal Year 2024 Budget Information
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During the 2022-23 school year, the Lakeville Area Schools Administration and Board of Education faced the difficult task of balancing the budget for the 2023-24 school year. With a minimum of $7 million dollars in budget cuts required for the 2023-24 school year, which is around 3.5% of the budget, the District considered a range of options to bring the finances back into balance. With the input of staff, school building and department leaders, union representatives, and the finance and facilities task forces, the Administration considered budget reduction options and presented a plan to the Board of Education for its consideration on March 13, 2023. The plan was finalized by the Board of Education at the Special Meeting on Tuesday, April 11, 2023.
Below is a summary of the approved reductions and cuts:
- Post-pandemic related cuts include adjusting LinK12 Lakeville Online School staffing and eliminating permanent substitutes.
- District office reductions and restructuring in the Business Office, Facilities Department, Human Resources Department, Communications and Public Relations Department, Student Services Department, Special Education Department, Teaching and Learning Department, Technology Department, Student Information Department, and the Superintendent’s Office
- Districtwide reductions include the elimination of the walker zone pay-to-ride bus program; balancing the Title 1 program; establishing starting salary limits for new hires; combining some staffing at the Area Learning Center and LinK12 Lakeville Online School; eliminating the use of unauthorized appliances; 0.5 full-time employees at Crystal Lake Education Center; establishing a facility user fee for use of facilities; and closing facilities for a few weeks during non-school days to save on utility/maintenance costs
- Elementary level adjustments include reducing two Elementary Assistant Principal positions, adding a STEM class for kindergarten and reducing one of two music sections, adjusting class sizes at Orchard Lake Elementary, reducing a support position in the Ignite! Program, and reducing a behavior support position at Cherry View Elementary
- At the middle school level, course and schedule adjustments were made to align to state standards in Fine Arts and English Language Arts while providing more exploratory classes, as well as cutting the COMET program, and increasing fees for middle school activities.
- High school level adjustments include a new required minimum enrollment of 15 students or more for all core and elective courses, as well as reductions of 3 full-time employees per building, which includes the elimination of one world language.
- Selling the Area Learning Center facility and moving the school to a suite at Kenwood Trail Middle School
- A K-12 reorganization of digital learning specialists, media specialists and educational technology support of 10 full-time employees, and reallocating support hours across all K-12 buildings
- Reducing the salary of the Board of Education to $1 for July 1 through December 31, 2023
FY24 Budget FAQs & Timeline
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FY23 and FY24 Budget Timeline
June 2022 - Fiscal Year 23 Budget approved for the fifth year of deficit spending
June 21, 2022 - Board of Education Work Session
The Board of Education approved the FY23 Budget.
Audio Recording | AgendaJune 28, 2022 - Regular Board of Education Meeting
The Board of Education approved the FY23 Budget.
Video Recording | Agenda
October 2022 - Audit and budget review and update
October 13, 2022 - State of the Schools Recording
Superintendent Dr. Doug Van Zyl and Assistant Superintendent Dr. Emily McDonald shared information about our school district, including demographics and enrollment information, community survey feedback, strategic plan updates, and a budget overview. (Presentation Slides)October 18, 2022 - Board of Education Work Session
The Board of Education heard an Audit Report.
Audio Recording | AgendaOctober 25, 2022 - Regular Board of Education Meeting
The Board of Education approved the FY22 Audit.
Video Recording | Agenda
November 2022 - Leadership discussions. Cut department and school budgets by 10 percent. New position hiring freeze and moratorium on out of state professional development.
November 15, 2022 - Board of Education Work Session
The Board of Education heard and discussed a finance update.
Audio Recording | Agenda
November 22, 2022 - Regular Board of Education Meeting
District Administration presented a FY23 Budget Update.
Video Recording | Agenda
December 2022 - Began process of adjusting and reorganizing programs. District leadership discussions. Task force groups began.
December 9, 2022 - Everything to Know in 194: Budget Update
December 13, 2022 - Regular Board of Education Meeting
The Board of Education held the FY23 Truth in Taxation Hearing.
Video Recording | AgendaDecember 14, 2022 - Finance and Facilities Task Force Meetings
January 2023 - District leadership and union discussions. Task force groups continued. Evaluation of district systems, organization and resources. Launched resident survey to gain input on finances and programming.
January 11, 2023 - Finance and Facilities Task Force Meetings
February 2023 - All staff feedback collection. Preliminary FY24 department and school budgets were submitted by administrators to the Business Office. Revised FY23 budget and community survey results were presented to the Board.
February 1, 2023 - Union Leadership Budget Meeting
February 1, 2023 - Finance and Facilities Task Force Meetings
February 13-21, 2023 - Staff Budget Updates
Superintendent Dr. Doug Van Zyl, Assistant Superintendent Dr. Emily McDonald, and Executive Director of Business Services Bill Holmgren presented the budget status, history and required reductions to all staff groups and asked staff to provide their feedback and ideas via a survey.
Presentation SlidesFebruary 21, 2023 - Board of Education Work Session
The Board of Education discussed the revised FY23 budget with $1.5 million in immediate adjustments as well as FY24 budget projections and needs.
Audio Recording | AgendaFebruary 28, 2023 - Regular Board of Education Meeting
The Board of Education approved a revised FY23 budget with $1.5 million in immediate adjustments. Community survey results were also presented.
Video Recording | Agenda
March 2023 - Task forces continue. Staffing process begins for all employee groups following EML contract timeline. Preliminary FY24 draft reductions presented to the Board.
March 1, 2023 - Finance and Facilities Task Force Meeting
March 3, 2023 - Staff Updates
Superintendent Dr. Doug Van Zyl provided shared a list of the staff Budget Survey feedback with District staff.March 13, 2023 - Board of Education Work Session
After carefully reviewing every area of the District and the input of our staff and resident finance work group, District Administration brought forward recommended reductions amounting to just over $7 million dollars district-wide.
Audio Recording | Agenda and PresentationMarch 15, 2023 - Finance and Facilities Task Force Meeting
March 21, 2023 - Board of Education Special Meeting Session
The Board of Education approved approximately $3.4 million in cuts, primarily at the school district’s central office and districtwide. Among these areas of cuts, the Board of Education requested additional information for further review at a Special Meeting on March 27. Additional information from the March 21 Special Meeting can be found here.
Audio Recording | Agenda and PresentationMarch 27, 2023 - Board of Education Special Meeting Session
Audio Recording | Agenda and PresentationMarch 28, 2023 - Regular Board of Education Meeting
Video Recording | Agenda
April 2023 - Final budget reductions are approved. Staffing process continues for all employee groups.
April 11, 2023 - Board of Education Special Meeting Session
Audio Recording | Agenda
Upcoming
April-June - Staffing process continues for all employee groups, draft FY24 budget to be presented to the Board of Education for review
May - The State legislative session ends, and state aid for public schools will be known; community survey planned
June - Final FY24 Budget due to the Board no later than June 30 with any additional recommendations, such as a referendum vote
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How did this financial situation occur?
Background
While we have a lot to be proud of and to celebrate in Lakeville Area Schools, we are currently in a perfect financial storm due to the following:
- Student enrollment continues to grow as projected. We have the largest enrollment in the District’s history with nearly 11,800 early childhood through grade 12 students. Enrollment is predicted to continue to grow steadily and we are tracking it closely. As we have grown, we have added resources to support our students. However, like other Minnesota districts, enrollment decreased slightly during the pandemic, which reduced last year’s revenue while expenses increased. That hurt our budget.
- Our expenses have gone up much faster than our revenue and we find ourselves in a significant budget crunch without adequate cash reserves, which are now below the 5% level required by School Board Policy 714. While enrollment is continuing to grow, structures and programs to support students that we started for very good reasons (before and during the pandemic) are not financially sustainable. Inflation has hit us hard, especially last year on essential operating costs such as bussing, utilities and substitute teachers.
- We are not alone in this pain, as all school districts in Minnesota are feeling financial strain. Our financial situation, like other Minnesota school districts, is compounded by state funding that has not kept up with inflation for nearly 20 years, as well as the state and federal governments not fully funding critical special education programs as promised. State funding is our biggest source of revenue – and when it does not keep pace with costs, it has a huge negative impact on our budget.
As we emerge from the pandemic, it’s becoming clear how all of these items have made a significant financial impact on our school district.
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How did the Administration determine which budget reductions to propose to the Board of Education?
The Administration sought input from staff, bargaining groups, and community stakeholders to examine areas of the budget that could be reduced. As they reviewed ideas submitted by stakeholders, the Administration prioritized keeping cuts as far away from students as possible by considering the following items:
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Spreading cuts throughout the district and the district office
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Eliminating redundancies and operating silos
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Cutting contracts and contracted workers before reducing employees
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Reviewing employee contracts and establishing salary limits for new hires
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Following/creating internal standards and ensuring we adjust to state standards and best practices for students
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Cutting conveniences, such as copy machines, personal appliances, cell phone reimbursements, travel, etc.
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Working to consolidate duplicate purchases across our departments/schools
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Finding creative solutions
Unfortunately, because approximately 80 percent of the District's budget goes to staffing costs, next year there will be staffing reductions district-wide. While the District is trying to make adjustments that impact students as little as possible, these reductions will be difficult as everything we do ultimately supports our students.
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What can we expect in terms of new funding from the Minnesota State Legislature?
Since the District will not know what will happen with the many bills proposed in the Minnesota State Legislature until late May, the Administration and Board of Education could not depend on the State to allocate enough funding and prevent making cuts given the District’s financial situation. Although the Fiscal Year 24 Budget is not due until June 30, 2023, some employee contracts require the District to make staffing decisions by March 15 or close to it. We are tracking the many bills being proposed by the House, Senate and Governor, and the possible impacts for Lakeville Area Schools.
You can learn more about legislative actions regarding education finance here:
Continued financial and facilities planning will be necessary for the District to reach the minimum fund balance of 5 percent required by School Board policy, and to support the anticipated growth in student enrollment. At this time, the situation is further complicated by an upcoming operating levy that is set to expire and is expected to require voter approval for renewal in November 2023. Once state funding is known, the Administration will present additional and necessary levy considerations to the Board of Education this spring for consideration on the November 2023 ballot. This includes the anticipated need for staffing to open Highview Elementary School.
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Why can’t some items be included in budget reductions?
The General Fund is essentially the District’s checkbook and savings account. We cannot move funds from our restricted, fee-based, or bond/levy accounts to cover the deficit in our General Fund.
Restricted funds are funds that we receive from the State of Minnesota for specific purposes. This funding covers programming like English Learners, Special Education, Achievement and Integration, Gifted and Talented, Safe Schools Grant, Area Learning Center, Staff Development, QComp, etc.
Fee-based funds include: Food Service, Community Ed, etc.
Funds received through levies and/or bond referendums can only be used for the items proposed in a given levy and/or bond referendum.
Intro to Minnesota School Finance
Learn more about Minnesota school finances in this 'Intro to Minnesota School Finance' video (Español | Soomaali).
Special Education Funding Video
Learn more about special education funding in this 'Special Education Funding' video (Español | Soomaali).