2023-24 & 2024-25 Cost Containment

As the cost containment process continues, answers to Frequently Asked Questions will be added to this section on the website. If you have additional questions about the cost containment process, please send them to Communications@wayzataschools.org. 
 

Q: How did we get into this position?
A:  The district is facing a budget shortfall due to:

• The on-going financial impact caused by the pandemic, including decreased student enrollment in the 2020-21 school year.
• The fact that state funding for education has not kept pace with inflation for several decades. To emphasize this point, the general education per pupil funding formula increased by only 2% for the current fiscal year, when general inflation is considered to be around 8%. Special education has also been underfunded for decades.
• Additional inflationary pressures for some operational functions impacting the district, such as the transportation budget increasing by about 13% in the current fiscal year.

Q: What about the funding from the State of Minnesota?
A:  State funding for general and special education has not kept pace with inflation for several decades.  The State Legislature is currently in the process of determining education funding for the next biennium. Regardless of the outcome of the legislative session scheduled to finish May 22, we are expecting there will likely be a remaining gap between revenues and our anticipated expenditures. Once state revenue is known, we plan to revisit the budget planning decisions being made now and determine if adjustments and refinements are possible.

Q: Will there be cuts in administration?
A: Yes, there are reductions recommended in administration and support staff at both the district and school levels. District-level reductions in administration and support total $1,040,100 and reductions at the elementary, middle and high school levels total $522,838 for the 2023-24 school year.

Q: Why isn’t more detail being provided about specific programs or staff being reduced?
A: Specific program and other identifying information is not being provided in the details so that staff affected by these reductions can be personally notified by their school principal or program supervisor at the appropriate time.

Q: What process was used to determine these cost containment recommendations? Who was involved in making these decisions? 
A: We started the district budgeting process in November 2022 by forecasting revenues and expenses to determine the projected amount needed to balance the budget for the 2023-24 and 2024-25 school years. In December 2022, we brought all district administrative leaders together to create an initial list of ideas and considerations for potential budget adjustments. A committee representing district schools and departments then met to create a list of cost containment recommendations.

Q: What are the effects of changing staffing ratios at the elementary, middle and high school levels? Does “change staffing ratios” mean larger class sizes?
A: "Change in staffing ratio" is a more accurate term to describe the specific changes that are taking place within the system. To indicate "increase class size by 1 or 2" suggests that all classes would have one or two more students in them next year, which is inaccurate. An example of this would be that if a grade level is staffed with a districtwide goal of 24 students, we use a range of +/-3 to determine staffing levels to maintain an appropriate budget. If the staffing ratio is increased, it does not mean that every classroom will automatically see an increase in students. *Staff ratios vary across the district depending on grade level.

Q: Why isn’t more detail being provided about specific programs or staff being reduced?
A: Specific program and other identifying information is not being provided in the details so that staff affected by these reductions can be personally notified by their school principal or program supervisor at the appropriate time.

Q: Why is it necessary to identify multiple years of budget reductions?
A:  The State of MN determines its funding over the next two year period (biennium). With the current budget assumptions, the district needs to reduce expenditures by about $6.5 million in 2023-2024 and another $2.5 million in 2024-2025 in order to keep its fund balance above 7%, which is consistent with district policy. Some of the budget containment ideas will take further review and consideration and will require some time to ensure their feasibility.  

Q: Why does the elementary level face a reduction of programs larger than any other school group? 
A: The proposed budget adjustments are as proportional as possible. The elementary is larger because there are nine schools, versus three middle schools and one high school.

Q: Does this mean the elimination of specialist classes? 
A: No, while we regularly review our curriculum offerings, elementary specialist classes are likely to continue to be offered just as they are in the current school year. 

Q: Has the decision been made to move to a 2-mile walk zone or is it under consideration?
A: Changing to a 2-mile walk zone is under consideration as part of the district’s cost containment process and if implemented, planning would occur this summer after the completion of summer school. Additional busing information would be shared with affected families at that time. 

Safety is always the first priority in the establishment of bus routes. Regardless of the distance, district policy 724 would continue to be followed. Policy 724 states, “students will be transported if walking to school or the bus stop would require crossing dangerous highways unaided by signals, student patrols, or police officers, or if other hazards exist along the walking route. Dangerous highway crossings and other hazards will be identified by school administration and parents/guardians will be informed of available transportation service.”

Q: Could the district save costs if students were asked to “opt-in” to use transportation services?
A:  In the past, the district did offer an opt-in option for transportation to high school students. This option was discontinued because, in general, it did not eliminate the need for many routes which would have helped cut costs. Because student numbers are so high in our neighborhoods throughout the district, having students opt-in to using busing, or automatically removing students who have a high school parking pass, would not have a significant effect on the number of routes we need to run each day.

Q: What happened to the pandemic relief funds that the district received? Why can’t they be used to help with the budget shortfall?
A:  Very little of the COVID relief funds could be used to cover or supplant existing expenses.  The district was required to use the funds in the manner prescribed by the federal government.  While the district received nearly $11.7 million in COVID relief funds distributed over a four-year period, it was one-time funding and not an on-going source of revenue. The funds had to specifically be used for: personal protective equipment (PPE) used during the pandemic, sanitation services and supplies, ventilation, mental health support, social workers, summer school, transportation and wi-fi hotspots.