The Eastern Carver County School Board at its Feb. 24 meeting approved cost containment measures to help balance the district’s budget over the next couple years.
Board members have been discussing possible cuts since August, when early budget projections revealed a serious gap between revenue and expenses for the next two school years. Administrators set out to propose cuts totaling about $5 million for 2025-26 and $4 million for 2026-27.
Cost containment proposals included an increase in class sizes, a reduction in middle school band lessons, restructured special education services, and tamped down increases for future salary and benefit adjustments. To bring in more revenue, the district proposed higher parking and student participation fees, among other items.
Following feedback from the public, district officials have scaled back planned cuts to the band program, approving a $117,000 drop in funding instead of the $211,000 initially discussed. The final plan also restored class sizes in kindergarten to current levels. Class sizes for grades 1-2 will rise by 0.5 students, while class sizes at remaining grade levels will grow by one student.
District 112 Superintendent Erin Rathke admitted the cuts will impact teachers and staff who have committed their careers to advancing student education.
“We have a challenging road ahead,” she said. “Each member of this staff … all of us contribute to the meaningful experiences and success of our students. I know these decisions impact people.”
Executive Director of Finance and Operations David Brecht reviewed the current status of the district’s financial picture during the meeting. He noted that education funding throughout Minnesota has not kept pace with inflation since 2003. Per pupil funding today is $7,281, he reported, but had increases tracked with inflation the rate would be $8,637 per student.
The financial squeeze has been exacerbated by additional unfunded state mandates and the end of federal COVID relief funds, Brecht said.
Even with the proposed cost containment measures for 2025-26, Brecht said, the district will be deficit-spending to the tune of $3 million next school year, cutting into its reserve funds. The $4 million in budget cuts for 2026-27 won’t balance the budget either, as about $2 million in reserve funding will be required to cover expenses, he added.
Brecht warned that the financial picture could worsen in the days ahead, depending on what happens to educational funding at the state and federal levels. He said Minnesota is facing a budget deficit in 2028-29, and there are worries that federal funding of the Department of Education could be slashed.
Board Treasurer Tim Klein noted that he’s been through three budget reductions during his tenure on the board. He said district leaders will need to “take the pulse of the community” to see if voters would approve a referendum to address the challenging financial situation.
He urged everyone to contact their state representatives and senators to address the “fundamental, structural problem with education funding.”
“Until that gets rectified, this movie is going to just continue to replay,” he said. “And I’d like to see a different movie.”
Board Chair Sean Olsen agreed.
“It’s really impossible on an ongoing basis to keep this going without something significant changing,” he said.
Olsen said implementation of the cuts will be done with respect and thoughtfulness.
“I know not everyone is going to be happy, but we’re trying our best.”
Board Director Ellie Krug thanked the district staff for doing a good job of explaining the financial crisis and developing a reasonable plan to address the situation.
“I think you’ve beaten every possible bush that you can beat to get to where we are with the cost containment,” Krug said. “I know it’s going to be painful.”
