FY26 Budget Update: Estimated Budget Reduction Breakdown

Last month, we shared that Duluth Public Schools was working to close a $4.2 million budget gap for the 2026-2027 school year. Following the completion of the staff displacement process this April, we are now sharing the comprehensive list of budget reductions and reallocations.

Throughout this process, our primary goal was to keep reductions as far away from the classroom as possible. To achieve this, the largest percentage of cuts was taken at the district administrative level:

• District Administration: 15.61% reduction
• Secondary Schools: 5.8% reduction
• Elementary Schools: 4.1% reduction

The finalized plan includes a total of $4,296,067 in estimated savings in the general fund budget. It is important to note that these changes involve two distinct actions; 

• Reductions: Eliminating certain positions or software contracts to save general fund dollars. 
• Reallocations: Reallocating funds and using restricted funds, such as Title funding, to maintain student supports.

We recognize that there are people behind every number in this report. While displacement notices have been issued, it is important to note that displacement is not always a layoff. We continue to work toward mitigating actual job losses by utilizing openings created by upcoming retirements and resignations.

Additionally, due to seniority rules within different bargaining units, a listed position reduction does not necessarily mean the individual currently in that role will be the one affected.

Note on Estimates: Budget figures are based on estimated costs: $50,000 for a full-time non-certified position and $100,000 for a full-time certified position.

The full site-by-site budget breakdown is now available at the link below. To help you navigate the document, we have organized the data into three tables:

• Table 1: Reductions from the general fund by site.
• Table 2: Details reallocation of funds used to maintain student supports.
• Table 3: A complete list of all reductions.

We understand this news is difficult for our community. These decisions were made after months of reviewing enrollment data and listening to feedback. 

Thank you for your continued support of our students and the grace you have shown our staff during this transition.

2026-2027 Estimate Budget Reduction Breakdown