The original need for budget reductions

Multiple financial pressures created the situation where last year, in 2023-24, Rdale’s leadership needed to cut approximately $17.4 million from the budget for the current year (2024-25). Those pressures included:

• A history of compensatory funding reliance: Rdale built budgets for years relying on compensatory funding to fill financial gaps.
• Declining enrollment: Fewer students in our schools meant less state funding, widening the financial gap.
• The end of COVID relief dollars: Federal funding that helped cover financial shortfalls during the pandemic ended.
• Contracts and inflation: Contracts and services became more expensive, especially as inflation surged, but revenue didn’t keep pace.

In May of 2024, $17.4 million in cuts were recommended and approved by the School Board. While some cuts were made, the full reduction didn’t happen. That left Rdale in an even deeper financial hole.

What went wrong?

• Compensatory funding counted twice: From the very beginning of last year’s budgeting process, the district projected approximately $200 million in revenue, which included about $20 million compensatory funding. At the end of the process, after the cuts were identified and the budget approved, staffing was done for the school year, and compensatory funding was calculated a second time and used to finalize staffing in our schools, thereby causing a double-counting of those funds.
• Leadership instability: Over the past decade, the district has experienced frequent leadership changes, including four different superintendents in the last five years. An interim superintendent was appointed in November 2023, and under the school board’s direction, the district did not hire a Chief Financial Officer (CFO) or finance director to fill that department’s vacant leadership position. As a result, crucial financial expertise was missing at a critical time.
• Lack of trained expertise: With no executive financial department leadership, contractors were hired for specific tasks, not holistic oversight, and the remaining district leadership was not equipped to fully understand or anticipate the impact of compensatory funding.
• All of this resulted in a failure of financial safeguards. By the time the new leadership team (New superintendent started in July 2024, and new CFO in August 2024) identified the compensatory funding issue in September and October of 2024, it was too late to make any adjustments.

Robbinsdale Area Schools (Rdale) is committed to transparency, collaboration, and community-driven decision-making. To ensure meaningful engagement, we have hosted two Town Hall meetings where community members shared their concerns, asked important questions, and provided valuable feedback. 

Jan. 23, 2025 – Town Hall at Armstrong High School

• Approximately 95 community members participated in discussions on budget challenges, school facilities, and academic priorities.
• View the presentation
• Read the summary report of feedback and questions

Nov. 20, 2024 – Town Hall at Cooper High School

• About 200 community members attended, voicing concerns and ideas for the district’s future.
• View the presentation
• Read the summary report of feedback and questions

What’s Next?

Additional Town Halls and engagement opportunities will be scheduled to ensure ongoing dialogue and collaboration. Stay informed, get involved, and help us build a stronger Robbinsdale together.

Check back for upcoming engagement opportunities!

Why not record or livestream?

These events have not been livestreamed or recorded because Town Hall meetings are highly interactive, with multiple speakers, open discussions, and audience participation throughout the room. Capturing this effectively would require multiple cameras, microphones, and live production staff to ensure clear audio and visuals. Without these resources, a livestream or recording would be poor quality and difficult to follow. Instead, we provide detailed summaries and presentations so everyone can stay informed.

At Robbinsdale Area Schools, we are committed to transparency, collaboration, and thoughtful decision-making as we navigate budget challenges. Community input is a vital part of this process, ensuring that our decisions reflect the priorities and values of our students, families, staff, and residents.

This year (2024-25)

Specifically regarding the 2024-25 budget, a feedback form/survey was launched on Nov. 20, 2024, during the first State of the Budget Town Hall meeting at Cooper High School, and responses were collected through Feb. 1, 2025. A total of 162 responses were received, reflecting a broad range of community concerns and suggestions regarding the district’s financial challenges and restructuring efforts.

2024-25 State of the Budget and Future Planning Feedback Summary

Last year (2023-24)

Before last year’s planned budget cuts, Rdale surveyed families, community members, staff, and high school students on budget priorities. 976 family/community members, 561 staff, and 453 students participated.

2023-24 Budget survey results

Budget and financial sustainability

1. How did the district accumulate a $21 million budget deficit?
Several factors contributed to the budget deficit, including:

• A decline in student enrollment, leading to reduced state funding
• Increased operating costs without proportional revenue increases
• A financial miscalculation that resulted in double-counted compensatory funding

2. How did the $20 million budget error happen?
The budget miscalculation occurred due to compensatory funding being double-counted in projections. This led to an overestimation of revenue, which was not identified in time to adjust financial planning accordingly.

3. When was the budget error discovered?
The error was discovered in late-October and early-November, 2024. As financial reports were reviewed in preparation for the upcoming fiscal year, it became clear that projected revenues were inaccurate due to the compensatory funding miscalculation.

4. What steps are being taken to ensure this doesn’t happen again?
The district is implementing stronger financial oversight measures, including:

• Enhanced internal auditing procedures
• More frequent and detailed financial reporting
• Additional training for financial staff to improve budget forecasting
• Increased transparency in financial communications with the school board and community

5. Will anyone be held accountable for this mistake?
The district is reviewing internal processes and responsibilities to determine how the error occurred and what personnel or systemic changes are necessary. 

6. What does Statutory Operating Debt (SOD) mean for the district?
Statutory Operating Debt (SOD) occurs when a school district’s fund balance falls below -2.5% of its annual expenditures, triggering state oversight. If Robbinsdale enters SOD status:

• The Minnesota Department of Education (MDE) will require the district to submit a financial recovery plan.
• Additional spending restrictions could be put in place to ensure financial stability.
• The district would need to take corrective actions to restore financial health, such as budget cuts, revenue increases, or restructuring expenses.

The district is working to avoid entering SOD by implementing financial adjustments now and increasing transparency in budget planning.

7. What is being done to address the deficit?
The district is reviewing cost-saving measures, seeking additional revenue sources, and prioritizing investments that directly benefit students. Efforts include evaluating administrative expenses, optimizing facilities, and exploring grants and community partnerships.

8. Could a new levy or bond referendum help close the budget gap?
The district has not recently sought a facilities bond and is evaluating whether a future levy or bond referendum is necessary. Increasing enrollment and securing external funding are also key strategies.

---

School closures and facilities planning

9. Are schools going to be closed? If so, when will a decision be made?
School closures are being considered, but no final decisions have been made. The district is conducting a comprehensive study on enrollment, building capacity, and long-term facility needs. The Reimagine Rdale: Vision 2030 Team will review data and community input, with recommendations expected later in the year.

10. What factors will be considered in determining school closures?
Key factors include:

• Enrollment trends and building utilization
• Financial sustainability
• Student programming and equitable access to opportunities
• Community input and impact

11. Will data on school enrollment and building capacity be made public?
Yes. The district is working with a demographer to update enrollment and capacity studies. This data will be shared at upcoming board meetings and through the Vision 2030 Team.

---

Community engagement and equity

12. How is the district ensuring all community voices are heard?
The district is committed to equitable engagement by:

• Hosting meetings in diverse community spaces
• Providing interpreters and multilingual materials
• Partnering with affinity groups to reach underrepresented voices
• Encouraging direct feedback through surveys and town halls

13. What is being done to improve racial equity and inclusion in schools?
The district is working to build a culture of belonging for all students. Efforts include increasing staff diversity, ensuring curriculum reflects diverse perspectives, and addressing disparities in student discipline and academic outcomes.

---

Future vision and next steps

14. What is the long-term vision for Robbinsdale schools?
The goal is to create a district that is financially stable, academically excellent, and a top choice for families. This includes:

• Strengthening academic programs and student support services
• Creating safe and engaging learning environments
• Retaining and attracting students through innovative programming
• Fostering a culture of trust, transparency, and collaboration

15. When will final decisions be made on major changes?
Decisions regarding facilities, programming, and budget adjustments will be made in phases throughout 2025. Updates will be provided at board meetings and via district communications.

16. How can I stay informed about upcoming changes?
Regular updates will be posted on the district website, through email newsletters, and at community meetings. Follow the district’s social media channels for real-time information.

---

Reimagine Rdale: Vision 2030

17. What is Reimagine Rdale: Vision 2030?
Reimagine Rdale: Vision 2030 is a community-driven initiative to shape the future of Robbinsdale Area Schools. It focuses on student learning, school facilities, financial sustainability, and community engagement to create a long-term strategic vision.

18. How can I get involved in the decision-making process?
Community members can participate through surveys, town halls, advisory groups, and public school board meetings. Stay informed through the district’s website and social media.

19. Why is this process important?
Robbinsdale Area Schools faces significant challenges, including declining enrollment, financial pressures, and the need to modernize learning experiences. Vision 2030 provides an opportunity to create a district that is responsive to students' needs, financially sustainable, and a strong choice for families.