District Planning for $5 Million Budget Adjustment 

The Stillwater Area Public Schools Board of Education reviewed a plan on March 3 to address a more than $5 million budget shortfall for the 2026–27 school year. You can view the presentation as part of the March 3 board meeting on YouTube.

Like many districts across Minnesota, Stillwater continues to face rising costs that are outpacing available funding. Unfunded mandates and inflation have added significant pressure to the district’s budget.

Why This Is Happening

The district’s three largest cost drivers are:

• Staff salaries
• Transportation
• Employee health benefits

Salaries and transportation alone have increased district costs by nearly $12 million since 2020. District leaders have emphasized that long-term stability requires both controlling costs and increasing enrollment.

What the Proposal Includes

The Board reviewed approximately $5.2 million in adjustments, including:

• Transportation cost reductions
• Adjustments to special education service models
• Reductions in administration and building support
• Changes to the elementary staffing model
• Staffing adjustments at the high school
• Coordination of middle school sports through Community Education

Throughout the process, district leadership has focused on keeping reductions as far away from classrooms and students as possible while maintaining long-term financial stability. However, with more than 80% of the district’s budgeting tied to staffing, there will be a number of employees impacted by these reductions.

What Families May Notice

Elementary Staffing Model:

At the elementary level, schools typically add another classroom teacher when enrollment reaches a certain number of students in a grade. Under the updated model, when a grade level has more students than ideal for one class but not enough to add another full classroom, the district will add a teacher assistant (TA) to support the classroom instead. This approach maintains strong student-to-adult ratios while helping manage costs. It also eliminates the need for multi-grade classrooms, which families and staff have consistently raised as a concern this year.

Middle School Athletics & Activities:

Community Education - which already runs middle school ski club and theater as well as enrichment programming in our elementary schools - will be coordinating athletics as well. We remain committed to providing opportunities for our middle school athletes and this change does not eliminate middle school sports. Students will continue to have access to athletic opportunities, practices, and competitions. We will work with coaches and families this spring to develop a sustainable new model that meets the needs of our students into the future. Weigh in with your feedback. 

High School Adjustments:

The high school is also making significant reductions — nearly $1 million — including a small increase to class sizes and staffing adjustments based on student enrollment patterns, including students who take college courses through PSEO.

These adjustments help balance the cost of a redesigned schedule that expands course access and better meets student needs. The schedule changes are also intended to attract and retain students, which supports the district’s long-term financial stability.

What Happens Next

The school board will take action on staffing changes at the next school board meeting, and will adopt the 2026-27 budget later this spring. Implementation details and timelines for changes being made as a result of these adjustments will be shared with families as decisions are finalized.

The district remains committed to providing high-quality learning experiences while ensuring long-term financial stability.