Duluth Public Schools Outlines Potential Budget Reductions to Ensure Financial Balance

Ahead of the November 3 election, Duluth Public Schools has released an overview of potential budget adjustments as part of its ongoing financial planning and commitment to transparency. Under Minnesota law, school districts are required to maintain a balanced budget and avoid Statutory Operating Debt.

Over the past three school years, Duluth Public Schools has cut $12 million from its operating budget—a total reduction of 8%—by reducing district administration costs by 16% and eliminating 48 positions across school sites. However, state education funding increases have continuously fallen short of inflation, creating a gap of $1,474 per student. Because spending reductions alone can no longer bridge this structural deficit, the Duluth School Board unanimously placed an operating levy referendum on the November 3 ballot.

Regardless of the election outcome, Minnesota property tax collection schedules require the district to make a mandatory $5 million budget reduction for the upcoming 2027–28 school year. If voters do not approve the referendum, the district will be required to eliminate a total of $12 million over the next two fiscal years—the equivalent of roughly 120 staff positions.

"We want to ensure our community has clear, factual information about our financial standing and what is at stake," said Superintendent John Magas. "While budget adjustments like these can be very painful, our priority remains protecting classroom instruction and keeping our community informed every step of the way."

The district outlined how the three potential election outcomes on November 3 would shape future budgets:

• If Both Questions Fail: The district will implement an immediate $12 million reduction over two fiscal years (roughly 120 positions). This would require structural cuts across programs, staffing levels, class sizes, and operations.
• If Question 1 Passes (and Question 2 Fails): Initial local revenue will cover a significant portion of the immediate deficit, though select permanent program reductions may still be required to maintain long-term balance.
• If Both Questions Pass: Local revenue will provide the bridge needed to stabilize district finances. While the initial $5 million timing adjustment for 2027–28 will still occur, the added revenue will prevent severe long-term reductions and create potential to restore positions and programs in 2028–29.

Superintendent Magas emphasizes that the list of potential reductions is for planning purposes, not final decisions. Formal budget planning for the 2027–28 school year will take place in early 2027 and would need School Board approval by June 30, 2027, before taking effect.

More information on the November 3 referendum, tax impact estimators, and town hall schedules can be found on the district website at www.isd709.org/referendum.

Potential Budget Reductions