June - 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 | Agenda

June 28, 2022 - Regular Board of Education Meeting
The Board of Education approved the FY23 Budget. 
Video Recording | Agenda 

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October - 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 | Agenda

October 25, 2022 - Regular Board of Education Meeting
The Board of Education approved the FY22 Audit. 
Video Recording | Agenda

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November - 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

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December - 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 | Agenda

December 14, 2022 - Finance and Facilities Task Force Meetings

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January - 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

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February - 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 Slides

February 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 | Agenda 

February 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

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March - 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 Presentation

March 15, 2023 - Finance and Facilities Task Force Meeting

March 21, 2023 - Board of Education Special Meeting Session
Budget Update  
Audio Recording | Agenda and Presentation

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April-June

Staffing process continues for all employee groups

Draft FY24 budget presented to the Board for review

Legislative session ends = State aid

Community survey #2

Final FY24 Budget due to the Board (no later than June 30) with any additional recommendations (School Board referendum vote)

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.

Here’s what we've done 

• Throughout the school year, the Administration has updated the Board on the budget pressures, enrollment numbers and the need to start making budget adjustments immediately where possible. The District reviewed and adjusted the current 2022-23 budget and made adjustments of approximately $1.5 million without impacting staffing.
• For the 2023-24 school year, budget cuts of at least $7 million dollars (3.5 percent of the budget) must be made to operate. As such, with the input of stakeholders, the Administration considered budget reduction options and proposed a plan to the Board for its consideration on March 13.

Here’s what's next

• The Administration must present a balanced budget with total cuts of at least $7 million for the 2023-24 school year for School Board approval.  
• Ongoing finance and facilities planning to get back to the required fund balance of at least 5 percent, and to support the projected student enrollment growth ahead. The financial situation is compounded by an expiring operating levy that must go to voters for renewal in November 2023. As part of this budget process, the Administration will be bringing forward additional levy considerations for a November 2023 ballot to the Board of Education this spring.

In short, the District cannot sustain as we look ahead without cutting our expenditures. We have always been a district to put students first through our operations and programming. However, the way we are currently structured is not financially sustainable. We need to look at all of our structures and programming and determine where cuts need to be made in order to get back to the required fund balance, right-size the budget and stabilize our finances. Good things are happening across our school district for our students, thanks to our staff and our families. Working together, we will solve these financial challenges and continue doing great things for our kids.

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: 

• Spreading cuts throughout the district and the district office

• Eliminating redundancies and operating silos

• Cutting contracts and contracted workers before reducing employees

• Reviewing employee contracts and establishing salary limits for new hires

• Following/creating internal standards and ensuring we adjust to state standards and best practices for students

• Cutting conveniences, such as copy machines, personal appliances, cell phone reimbursements, travel, etc. 

• Working to consolidate duplicate purchases across our departments/schools

• 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.

You can review a summary of staff feedback here. 

We will not know the outcome of the bills being proposed in the Minnesota State Legislature until the end of the legislative session in May. We cannot rely on the State to provide adequate funding and avoid making reductions. 

You can learn more about legislative actions regarding education finance here:

• Association of Metropolitan School Districts

• Minnesota School Boards Association 

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).