An accounting error has Robbinsdale Area Schools facing a whopping $20 million shortfall that leaders say will take creative measures to solve moving forward.
District leaders hosted a community meeting Wednesday night to answers questions from families concerned with how their tax money is being spent.
According to the district, $20 million in compensatory funding was calculated twice as part of the $200 million budget, which is made up of $180 million in general revenues.
"It was an error in the implementation in the staffing and budget process," said Robbinsdale CFO Kim Koheisel. "We overstaffed what we should have been doing. That was the error."
The 2025-2026 budget shortfall is estimated between $19 and $21 million.
In a letter sent out by the district, Hoheisel said she expects the district to be in Statutory Operating Debt by the end of the 2024-25 fiscal year. That means the 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 wrote. “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.”
Moving forward the district says they will need to get creative to solve the looming budget woes. Some of those proposals include repurposing, renovating, or potentially closing buildings.
There's also the potential for a referendum.
“Rdale’s commitment to our students and community remains unwavering,” wrote Superintendent Dr. Teri 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.”