Budget reduction and realignment
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Phase 3 budget reduction and realignment process to begin, community meetings set
The process to determine a solution to address challenges for the 2026-27 Anoka-Hennepin School District budget took an initial step forward with a review of draft budget considerations and possible solutions at a School Board work session held Monday, Sept. 8.Quick facts: An initial $15 million budget gap has been narrowed, with a remaining target of $8 million in reductions and realignments identified for the 2026-27 school year.
- This item was discussed at the School Board work session held Monday, Sept. 8. Watch the presentation.
- View the Phase 3 Budget reduction and realignment slides
- Provide your feedback: bit.ly/AHSchoolsBudgetFeedback
- An additional presentation will be shared at the Monday, Sept. 22 School Board meeting and also at a series of community meetings in an open house format.
- Approval of the budget reductions will be considered following review of public feedback and recommendations from school and district administration.
The big picture: The Anoka-Hennepin School Board took action beginning in February 2024 to reduce and realign the budget for the current school year, reducing over 200 administrative and central office positions in a two-phased, $14.14 million reduction process. The current process, Phase 3, will provide solutions to maintain financial stability for the 2026-27 school year. Details include:
Phase 1: $5.1 million reduction in district and central office/services.- Elimination of 40 positions and operations reductions of $1.1 million in areas such as transportation and district technology.
Phase 2: $9.04 million reduction in district and central office/services.
- Reduction of over 200 district office and central services positions and realignment of District leadership structure.
- One-time use of district fund balance and reduction of $5 million in strategic investments to reach the budget reduction and reallocation goal.
- No requirement to pursue a referendum election.
Phase 3: Projected $8 million in reductions or realignments under consideration.
Be informed: Attend and engage at upcoming community meetings
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The Anoka-Hennepin School Board values community input to inform decision-making. A presentation will detail the current status of the reduction process and feedback will be collected and provided to the School Board through a series of public community meetings at area middle schools in addition to an online feedback form.
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Tuesday, Sept. 23 from 6-7 p.m. at Anoka Middle School for the Arts, Fred Moore campus (1523 S Fifth Ave., Anoka).
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Wednesday, Sept. 24 from 6-7 p.m. at Roosevelt Middle School (650 125th Ave. NE, Blaine).
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Tuesday, Sept. 30 from 6-7 p.m. at Jackson Middle School (6000 109th Ave. N., Champlin).
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Wednesday, Oct.1 from 6-7 p.m. at Coon Rapids Middle School (11600 Raven St. NW. Coon Rapids).
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Wednesday, Oct. 8 from 6-7 p.m. at Oak View Middle School (15400 Hanson Blvd., Andover).
All sessions will include a short presentation at 6:10 p.m. Residents will then have the opportunity to ask questions and provide feedback to district staff and school board members in attendance.
View a recording of the presentation shared at the community meetings Sept. 23-Oct. 8.
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Frequently Asked Questions (FAQs)
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Does your reduction plan cut administration first, before cutting any classroom teachers?
Yes. The strategy to reduce as far away from the classroom as possible was a planning parameter in the multi-phased process completed last November. The school district has already taken action to reduce the budget by $14.1 million in administration and central services through Phase 1 (47 positions were reduced/realigned), and Phase 2 (elimination of 176 positions) in the budget reduction process.
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I can pay for my student’s lunch and breakfast if that helps keep a teacher. Would that help?
The State of Minnesota provided funding and a requirement to provide breakfast and lunch for all students in public schools at no cost. It is not possible to use this funding for other district programs or needs.
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A referendum option was proposed in Phase 2 last fall. If the district had pursued a referendum, what would that have meant for the district’s current financial situation if voters approved it this fall?
There are many variables involved in providing an accurate answer to this question. Additional revenue could have allowed the District to consider not reducing services as being considered this fall. The School Board would have detailed use of the funds if approved, and then taken the appropriate action plan as outlined in the referendum request.
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Is the district considering a middle school schedule change for Phase 3?
Yes. A change to the middle school schedule is an option presented, which would provide the district with $3.84 million, nearly half of the District’s $8 million budget reduction target.
If approved as presented, the middle school program would move to a six period day format. This could be achieved without increasing class sizes and with an increase in instructional time for core subject areas. Elective options would be reduced through this plan.
Changes in state guidelines also require students to register for an additional period of physical education and science in seventh grade.
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I just learned about the community meetings. How can I learn more if I missed them?
View a recording of the presentation shared at the community meetings Sept. 23-Oct. 8.The School Board is committed to reviewing community feedback prior to a final decision. The feedback form will be open through Oct. 17 so a report may be compiled for the School Board to review.
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How do you plan to ensure there is transparency for the public in this process?
The School Board will consider a review and comment on the draft recommendation plan from members of the public through a series of public open house meetings, School Board meetings and online forms. School Board meetings are streamed live and broadcast on local cable television to increase awareness and understanding of decisions. Please be sure to share your perspectives and ideas for the district using this process.
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What are the district’s total unfunded mandate expenses?
The School Board reviewed a listing of unfunded mandates as part of planning for legislative actions for the school district in early 2025. These include:
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Staffing for Special Education and English Learners — both of which are required services but are underfunded by an estimated $28 to $32 million for special education and $10 million for English learners.
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Summer unemployment is a new requirement that is currently covered by a one-time funding allocation by the legislature. This will become an ongoing mandate costing $3.5 to $4 million annually if no additional funding is provided, as unemployment is categorized as a benefit in the district’s budget.
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Minnesota Paid Leave is a new requirement funded equally with a district contribution and a payroll tax on employees. This is estimated as a $2.6 million annual cost. The program begins on Jan. 1, 2026.
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The READ Act requires additional staff time for both training and curriculum implementation of an estimated $5 to $7 million over the funds provided from the State of Minnesota for implementation.
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The K–3 discipline mandate involves additional staffing and facility needs to support students an families and ensure student success is achieved. This is estimated at $1 to $1.5 million.
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What funding has the district received for the READ Act and when did they receive it?
The money received from the state is being used for READ Act implementation, including the Science of Reading, which is professional development for LETRS training and curriculum materials. There were no new Read Act funds from the last legislative session.
The district is paying significantly more dollars beyond the READ Act funds for the purchase of the current elementary school literacy curriculum (CKLA). The money provided by the state does not cover the costs Anoka-Hennepin Schools and other districts have for instructional materials and required literacy screening materials.
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The district received a total of $2,935,956 for the READ Act in the 2024-25 school year..
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$1,542,922 was allocated for READ ACT aid supplies and materials
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$1,393,034 was allocated for READ ACT professional development
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The district budget supply dollars were also applied to the CKLA adoption this summer in the 2025-26 school year to offset the purchase price of $4.5M.
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The training dollars were applied to teacher training costs in the 2024-25 school year and have been fully expended.
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Why isn’t the district pursuing a referendum this fall?
Anoka-Hennepin Schools last offered voters to fund an operating levy increase in 2021 in an election that included renewals of existing levies for operating and capital projects/technology funding. While the tax-neutral questions were approved, the request for additional funding was denied.
Last fall, as part of the Phase 2 budget reduction and reallocation process, the School Board discussed the option of offering a levy referendum election but opted not to pursue that option.
Additional funds need to be approved by voters in a General Election during the month of November following a resolution of the school board. The deadline to hold a referendum for this election cycle has passed.
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Why isn’t the district considering data from the community survey? The most recent community survey indicated that over 80% of the community was in support of a referendum.
The most recent Anoka-Hennepin community survey was completed by an independent consultant, Morris Leatherman, and presented to the School Board in October 2024. The question asked in the survey asked for agreement or disagreement with this statement:
“The Anoka-Hennepin School District is a good investment, and I would support a property tax increase to protect that investment? The results showed 13% strongly agree, 69% agree, 16% disagree, 1% strongly disagree and 2% don’t know or refused to answer.”
Please review the presentation for important details and context.
The School Board did not authorize a community survey in 2025 so there is no data to consider.
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If the district passed a referendum, would that have alleviated some of these cuts, including the ones from phase 1 and 2 that have already impacted students?
The last referendum election that the district pursued was in the fall of 2021. At that time, three questions were on the ballot:
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Renewal of an operating levy.
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Renewal of a capital projects levy.
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Invest in a new operating levy.
Questions 1 and 2 were approved, and Question 3 was rejected by voters with 54.53% of the vote.
Question 3 asked voters to consider a new operating levy equal to $11 million in annual funding beginning in 2023. Funding from Question 3 would have provided budget stability and extended services provided through one-time federal funding due to the pandemic for mental health, social-emotional and academic support.
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What percentage of funds are spent on athletics, clubs, administrators per building? All very important, but what is and isn't necessary?
While high school athletics are supported by participation fees, tickets and booster club revenue, the general fund provides $5.1 million to support these activities. Revenue collected for fees is $1.4 million and ticket revenue is $675,000 along with miscellaneous revenue of $80,000. Expenses are $6.1 million for supplies, salaries/benefits and $1.8 million for transportation for a total of $7.2 million.
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What do each of the options look like on the ground if they are implemented? Tell the families what would look different in our schools.
Due to the number of possible options and scenarios it is difficult to provide a detailed specific response to this question. Consider that with the removal of a staff person their work would either transfer to other staff or discontinued in the district as a result of a reduction.
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Are there ways to cut costs in transportation? Why do “open enrolled” students get free bussing or transportation?
Anoka-Hennepin trimmed 10 bus routes this year as part of the Phase 2 reduction plan for a $350,000 in operations savings. Further cuts would create disruptions in school start times and potential safety issues for students.
Regarding “open enrolled” students, Anoka-Hennepin Schools partners with the Northwest Suburban Integration School District (NWISD) to provide students in that consortium of school districts the opportunities to enroll in magnet or specialty schools by completing an application and lottery process. Transportation for students in this program is provided, with funding also provided through the NWSID. The program is funded through state, federal, and local sources, with specific funding for integration programs coming from a dedicated state program. -
Can we increase general education class size by 1-2 students in the middle and high school level to make up for some costs?
The School Board has directed to maintain class sizes to the extent possible. Across the board increases in class size guidelines are not being considered.
Agenda items on recent School Board meetings
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Sept. 8, 2025: School Board work session
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Nov. 25, 2024: Regular School Board meeting
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Nov. 23, 2024: School Board work session
View item 3.A. FY24 Financial Results, Updated FY25, FY26, FY27 Budgets and Budget Reduction and Reallocation Discussion materials from the School Board work session held Nov. 23, 2024.
Supplemental information is available in Appendix A (FY24 General Fund Financial Results), Appendix B (Projected budget summary for FY24, FY25, FY26, FY27). -
Nov. 4, 2024: School Board work session
View item 4.B. Phase 2 Budget Reduction and Reallocations Update from the School Board work session held Nov. 4, 2024. Supplemental information is available in Appendix H (Nov. 4 financial summary), Appendix I (Oct. 2024 financial summary), Appendix J (Oct. 28 presentation slides), Appendix K (feedback summary report).
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Oct. 28, 2024 - Regular School Board meeting
View item 7.D. Phase II Budget Reductions from the Regular School Board meeting held Oct. 28, 2024.
Supplemental information is available in Appendix N (presentation slides), Appendix N1 (feedback report summary) and Appendix N2 (financial summary).
View the video presentation on the School District YouTube channel. -
Sept. 23, 2024 - Regular School Board meeting
Supplemental information is available in Appendix N (presentation slides) and Appendix O (September 2024 financial summary).
View the video presentation on the School District YouTube channel.
Related news
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School Board action addresses $26 million budget gap for 2025-26 school year
(11/26/2024) Board action endorsed a budget reduction and reallocation plan Nov. 25, completing a process that unfolded over the past several months and allows planning for the 2025-26 school year to remain on schedule. Read the full story.
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Community review and comment process begins for Phase 2 budget reductions and realignment process
(09/23/2024) The process to determine a solution to address a $21 million budget reduction gap facing Anoka-Hennepin Schools took an important step forward with a draft recommendations presented at the Monday, Sept. 23 Anoka-Hennepin School Board Meeting. Read the full story.
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District to begin budget reduction and realignment process this spring
(02/05/2024) Anoka-Hennepin Schools is facing budget challenges similar to school districts across the state that have created a budget imbalance that must be addressed. Action is being taken now in order to lower the impact on classrooms with a phased, two-year plan to remedy an preliminary $30 million adjustment prior to the 2025-26 school year. Read the full story.
