District To Close $5 Million Budget Gap for 2025-26

STILLWATER, Minn. -- April 8, 2025 -- Like many districts across Minnesota, Stillwater Area Public Schools is facing a significant budget shortfall for the 2025-26 school year. District leaders are working to close a $5 million gap—about 3% of the overall operating budget—through strategic reductions and smarter investments in student learning.

Why the Shortfall?

Several financial pressures are contributing to the deficit:

• Unfunded state mandates, like the READ Act, which requires a new literacy curriculum - costing about $800,000.
• Uncertain state funding, as Minnesota faces its own budget deficit.
• Changing student enrollment, rising costs due to inflation, and the expiration of federal grants.

Prioritizing What Matters Most

While reductions are necessary, the district is committed to investing in high-impact areas that prepare students for success. That's why we engage in a Priority-Based Budgeting process that helps us identify areas where we need to invest more resources, as well as others where we can eliminate or reduce costs.

Our top priority is on literacy, and we will be investing in a new curriculum and training for teachers. We'll also adopt a new elementary specialist schedule, which will ensure teachers have the time and resources they need to successfully implement the new curriculum. Science will be taught by dedicated specialists at the elementary level, while art and media will be integrated into classroom learning. This will provide 40 more minutes in the school day for reading instruction - a requirement of our new literacy program.

Adapting to Emerging Trends

Staffing levels are being adjusted to reflect projected enrollment. This includes a reduction in classroom teaching positions to match student numbers. School and district support staff positions are also being reduced. 

Additional reductions will be made in:

• Curriculum materials and digital tools that are not closely aligned with core instruction or district learning priorities.

• Employee benefits contributions, as the district works to clearly define its role in benefit cost-sharing moving forward.