Business and Finance
Strategic financial management and effective budget controls are the foundation of a good school finance system. Our district's mission and goals can only be accomplished through the effective allocation of human, financial, and physical resources. School funding drives the opportunities available to our students, and our decisions are made in the best interests of all students. Community support of our schools is invaluable to providing safe, healthy, and positive learning environments and programs for every student.
Our finance team is committed to accountability, communication and transparency. Our public schools are among the most valuable assets in our community, and they are owned by the community. As responsible stewards of taxpayer resources, we welcome your questions.
Budget: Revenues and Expenses
In Minnesota, school funding comes primarily from three sources: Federal, State, Local dollars. According to the Minnesota Department of Education under the current funding formulas, school districts receive on average 20% of their annual operating budget through local property taxes; in Cambridge-Isanti only 11% of our annual revenue comes from local property taxes. We also receive less state funding than the average school district.
Cambridge-Isanti School District receives $1,300 less in general education funding per student compared to the average Minnesota school district. With approximately 5,000 students in our district, this revenue shortfall results in a $6.4 million funding gap annually compared to an average Minnesota school district of a similar size. Our district ranks 311/327 Minnesota school districts (or among the bottom 7%). Even among neighboring districts, C-I Schools rank last in the Mississippi 8 Conference for per-student revenue and spending.
Here is a short video explanation of Minnesota school funding:
School Finance in Minnesota from MASBO on Vimeo.
The District’s primary expenses are: Instructional program (70%) Sites & Buildings (14%) Pupil Support Services (8%) Administration (8%). The District spends a larger percentage of its budget on instructional programs and a smaller percentage on administration than the average Minnesota district. Because we are a human enterprise, 80% of the district budget is spent on people (salaries and benefits). The District is one of the largest employers, the largest foodservice operator, and the largest transportation provider in the county.
An Ongoing Problem
School funding has not kept pace with inflation. In fact, according to a 2020 state report on education funding, our general education formula has lost 10% of its buying power since 2003. Even this year when the legislature touted a 2.45% increase – that is not on pace with inflation.
Furthermore, because we do not have a local referendum, our community is leaving a half-million dollars in state funding on the table. The state would pay $500,000 of the cost of a referendum if it was approved by voters. Those are state taxes that residents have already paid in income tax and sales taxes that go elsewhere if our community does not pass a referendum.
The District relies on state funding for 83% of its budget. The set budget is set for the next two years, and we know we will continue to fall behind because we don't have a local operating referendum like most other school districts in Minnesota. With no additional funding, the school district will continue to face annual budget cuts. This means more layoffs, fewer services, and program cuts.
Additional School Finance Information
There is widespread agreement that the education funding formula in Minnesota is broken and has great disparities. A state task force recently issued a report and recommendations to be considered by the Legislature. Each year by statute, the state publishes a school funding disparity report and it shows that disparities are increasing and rural districts are negatively impacted. There is also an increasing reliance on local referenda. Local referenda provide local funding and local control.