Update on financial challenges; Town Hall Set for Wednesday, Nov. 20

The Robbinsdale Area Schools (Rdale) Board of Education heard a presentation Nov. 18 outlining the district’s financial challenges. 

For the 2025-2026 fiscal year, Rdale faces an anticipated budget shortfall of $19-21 million. Kristen Hoheisel, Chief Financial Officer, also told the School Board she anticipates the school district to be in Statutory Operating Debt (SOD) at the end of the 2024-25 fiscal year. 

SOD is a state-defined status triggered when a school district’s year-end deficit exceeds 2.5 percent of its annual operating expenses and will require the district to submit a corrective financial plan to the Minnesota Department of Education (MDE).

“This is a pivotal moment for our district,” Hoheisel said. “While these financial realities are difficult, they also represent an opportunity to reimagine our approach to serving students. I believe we can turn these challenges into a springboard for transformative growth for the district.”

How did we get here?

The primary driver of the district’s budget shortfall is that, despite extensive planning for the 2024-25 fiscal year, only $3.2 million of the $17.4 million in proposed cuts are anticipated to be realized. So, instead of having a balanced budget, the result will be millions of dollars in deficit spending for the current fiscal year.

“This situation stems from an error in implementation of the budget process,” Hoheisel said. “Our total revenues amount to roughly $200 million, which includes $180 million in general revenues and about $20 million in compensatory funding. However, in the implementation of the budget process, the compensatory funding was included in the $200 million revenue assumption and then added again separately, effectively counting it twice. This error led us to over-state our available resources.”

Moving forward

In coming weeks and months, Rdale will engage the community through transparent conversations about the district’s path forward – both academically and financially. 

Superintendent Dr. Teri Staloch emphasized that these discussions will balance fiscal responsibility with a focus on student-centered outcomes.

“Rdale’s commitment to our students and community remains unwavering,” said Dr. Staloch. “The work is just beginning as we reimagine what it means to be a student here in Rdale, and we’re inviting the community to help shape a future that is both resilient and inspiring. District leaders look forward to engaging with our school community over the next few months. Together, we’ll turn today’s challenges into an even brighter future for every Rdale student.”

The district has already begun planning for both short-term and long-term solutions, including:

• Review of 2023-24 stakeholder input and feedback to inform budget reductions
• A community-engaged planning process to align academic programming, facilities, and enrollment with the district’s vision, which may include repurposing, renovating, or potentially closing buildings
• Exploring funding measures, including a potential future referendum, to support student and district needs

State of the Budget Town Hall

As part of this commitment to transparency, Rdale invites families, staff, and community members to attend the State of the Budget Town Hall from 6:30 to 8 p.m. on Wednesday, Nov. 20, at Cooper High School. Hoheisel and Staloch will provide those in attendance with an overview of the financial outlook. Rdale encourages community input and invites all questions, feedback, and concerns during this event.

To ensure all voices are heard, we encourage members of our school community to share their thoughts and questions through a feedback form (https://bit.ly/3UZz0Tz). Your input is invaluable and this initial feedback will help guide the district as we navigate these challenges together.

“While these are challenging times, they are also times of great potential,” Hoheisel said. “Together with our community, we will make decisions that not only address our financial needs but also lay the groundwork for an inspiring future for our students.”