Our Story
How We Got Here
Inflation outpaces funding
Anyone who is responsible for a budget, whether that budget is a business, a school, or a household, knows that when you spend more than you take in, your budget will end up in the red. Budget managers must work hard to prioritize expenses and determine how and when money should be spent.
Since 2003, the funding provided to Minnesota school districts through the funding formula has fallen behind the ever-increasing costs of inflation.
In 2021, the general funding formula for Minnesota school districts amounts to $6,567 per student. As the chart to the right shows, if school funding had kept up with inflation (red line), rather than falling stagnant each year (green line), the funding formula would be $7,206. That is a difference of $639 per student.
State Funding Per Student
Mandatory Services, Insufficient Funding
This state funding shortfall is compounded by limited funding streams that do not keep up with the demands of inflation or statewide mandates. Every unfunded mandate draws down our general fund.
This state funding shortfall is compounded by limited funding streams that do not keep up with the demands of inflation or statewide mandates. Every unfunded mandate draws down our general fund.
Busing
The state of Minnesota mandates student busing, but often does not provide sufficient funds to operate a transportation department.
Special Education
Special education is another required service that is funded way below the costs that are incurred by special education programs.
Food Service
School meal programs are a very important part of the day for many students. Students cannot learn if they are hungry, so Bemidji Area Schools provides over one million meals in its school each year to nourish students and help them learn.
Many other programs, such as assessment and testing, school safety, technology, and school nurses are expensive but not funded properly.
As a result of the increasing gap between the per pupil funding from the state of Minnesota and the inflationary costs of operating a school district, our spending gap is increasing. Without a successful operating referendum, we will be forced to make cuts each year to close the budget gap.
So what?
If the operating referendum does not pass, the school district will be forced to make a number of difficult decisions. Last year, ISD 31 was forced to reduce the budget by $4 million. Cuts included teachers, paraprofessionals, administration, food service, custodians, bus routes, and some activities that students enjoyed. The cuts also included the closing of Central Elementary School.
If the operating referendum does not pass, the district will need to make further cuts in the same areas, but the district will also need to explore cuts in programs such as music, robotics, art, sports, and student supports. As more teachers are cut, the result will be larger classroom sizes.