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The Minneapolis school board has formally asked Superintendent Dr. Lisa Sayles-Adams for information that could lead to school closures. They passed a resolution to the effect at a recent meeting.

The board first drafted the directive —which asks for an initial report to the board by April 2026 — at two day-long meetings in June and August. The planning follows years of discussion about closing schools in a district with 29,000 students but the capacity for 42,000 and thus a bevy of half-empty schools.

Even as enrollment declines at a school building, the fixed expenses for building staff — like principals, secretaries, nurses, librarians, culinary workers, custodians and social workers — stay the same or go up. With so many buildings below capacity, a big portion of each Minneapolis student’s funding has to go toward covering these fixed building-level costs, draining money away from instruction and extracurricular activities.

The board resolution comprises topics for district administrators to investigate, including efficient use of current buildings, potential changes to magnet programs, and ways to increase enrollment in the district.

Years-long discussion about the financial burden of operating small enrollment schools

The process for downsizing the district’s footprint has been long and circuitous.

In October 2022the district prepared a comprehensive financial assessment forecasting that without significant cost cutting, the district would end up draining its reserves, while expenses would exceed revenues by the end of fiscal year 2026. The district has avoided that fate by cutting services and raising class sizes, but it is still unable to balance its budget without relying on reserves and other one-time funds.

The 2022 memo did not prescribe closing schools, but it did present an analysis showing enrollment growth alone could not overcome the district’s structural inefficiencies resulting from operating many schools with small enrollments. At the time of the analysis, Anoka-Hennepin was operating 37 school buildings while enrolling about 37,000 students. Minneapolis was operating 61 buildings while enrolling about 29,000 students. Minneapolis had about half as many students per building as Anoka-Hennepin.

The board first publicly discussed reducing the number of schools in March 2023, when then-board Chair Sharon El-Amin asked Rochelle Cox, the then-interim superintendent, to develop a draft plan for “school transformation.” Neither Cox nor the board took action.

Two months before current Superintendent Dr. Lisa Sayles-Adams started at the district in early 2024, the School Board passed a “transformation resolution” that directed the district to do an accounting of physical space but stopped short of calling for a timeline on school closures.

Sayle-Adams promised to tackle “right-sizing” the district after passing a budget in June 2024, because, she said, the community asked her to address the issue.

Low enrollment schools require more funding per student for building-level staff

The district is contending with rising costs and operating a significant number of small buildings, as well as buildings operating below capacity. Given the rising fixed costs of operating these buildings, that leaves less money for everything else, from class size reduction to teacher pay and programs commonly found in most school districts like world languages, art, music and athletics.

Across the district, as building-level enrollment has declined, students have lost access to services like academic support if they’re struggling; staff to address student behavior; and community liaisons to help parents connect with schools. Small elementary schools have difficulty funding full-time positions for electives like art, music and gym, while hiring part-time staff for these positions is challenging. Some elementary students have gone without these electives, or only have music or art for part of the school year.

Enrollment declines at middle and high schools have meant fewer elective options, like world languages, dance, theater and orchestra, as well as extracurriculars. Students also lose access to advanced coursework — like AP or IB classes — when there are too few students in the school who want to enroll. Many of the district’s high schools are now sharing athletic teams because individual schools lack enough students and funding to support a robust athletics program.

The decline in services drives some families to schools outside the district that have the services and programs they desire, compounding the enrollment declines.

Declines in enrollment mitigated by new-to-country students

Minneapolis Public Schools lost about 15% of its enrollment in the wake of the COVID-19 pandemic, due to a combination of factors including implementing a controversial plan redrawing school boundaries, and keeping its schools closed longer during the pandemic than any other Minnesota district, which was followed in March 2022 by a three week educator strike.

The district has enjoyed a small enrollment increase both last year and this year. Although the district does not track the immigration status of students, the increase has been attributed almost entirely to students newly arrived to the United States from Central America. Since the 2021-22 school year, English learner students have increased from 17% of the district’s students to 23% in the 2024-25 school year, according to Minnesota Department of Education data.

This year, the district expects to spend at least $17 million more on English learner services than it receives in funding from state and federal sources. Although the Legislature increased state aid for English learners during the 2023 legislative session, the district’s funding is insufficient to cover the cost of providing the intensive services needed by students with the lowest levels of English proficiency.

Many of the newcomer students are also unhoused, which has led to growing costs for the district to transport students from shelters outside district boundaries, as required under the federal McKinney-Vento law. The state has started to pay the cost of this transportation under a law passed in 2023.

It is not clear whether changes to federal immigration policy will impact the district’s ability to continue to rely on newcomers to stabilize or grow enrollment in the future.

Future enrollment expected to decline, limiting district’s funding

Hazel Reinhardt, a demographer hired by the district, says enrollment is likely to continue to decline in the coming years because of lower birth rates, fewer families choosing to raise children in the city, and the state’s favorable laws around charter schools and open enrollment, allowing parents to send their children to St. Paul or suburban schools.

Reinhardt told the board in June that once parents leave for charter and private schools or open enrollment options, “precious few” districts are able to bring them back.

Most of the district’s funding is based on enrollment, so declining enrollment has created a ballooning fiscal crisis. Growing costs for both labor and services have outpaced increases in state and local funding.

The district continues to cut services, increase class sizes and pull from its dwindling reserve funds to balance its annual budget. The district is expected to use $25 million from its reserves this school year after using $85 million from reserves last school year.

The district’s enrollment woes and related financial distress are not unique to Minneapolis, with similar challenges facing large urban districts like Oakland, San Francisco, Denver, Seattle and Portland. Denver and Oakland have closed a small number of schools in recent years, but not enough to stabilize district finances. And school boards in Seattle and San Francisco have walked away from closure plans after significant public pressure, leaving both districts with growing budget deficits.

Minnesota Reformers is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Minnesota Reformer maintains editorial independence. Contact Editor J. Patrick Coolican for questions: (email protected).

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