OUR CHALLENGES
Our district faces growing budget deficits and cuts to staff and student programs
We’ve made meaningful progress — but our financial situation is urgent.
Marshall Public Schools is proud of the academic growth we’re seeing, especially in early literacy, middle school math, and science. Career and technical program enrollment is growing. Chronic absenteeism and behavioral incidents are down. And students are finding success in the classroom and beyond — from early reading to state-level athletics and activities.
But we’re now facing a growing financial gap that threatens our ability to maintain these services.
State funding has failed to keep up with inflation for over two decades. In fact, the state of Minnesota is contributing nearly 19% less for general education than it was in 2005 (adjusted for inflation).
For the 2024-2025 school year, Marshall Public Schools cut $350,000 in spending and deficit spent $1.1 million. For 2025-2026, the district faces a $1.8 million deficit. Without additional funding, the school board will need to use a combination of budget cuts and emergency reserve funds to avoid further deficit spending. Even with these measures, the deficit is projected to double over the next four years and emergency reserves are expected to be wiped out within three years.
Anticipated cuts if the referendum is rejected:
Park Side: $205,500 - Five staff positions
Southview: $247,500 - Four staff positions
Middle School: $375,000 - Seven staff positions
High School/ALC/CTI: $354,000 - Six staff positions
District Wide: $507,700 - Seven staff positions
Programs and transportation cuts: $239,225
TOTAL: $1,919,925
In total, staff compensation accounts for about 81.5% of our district’s general fund expenses. Of all staff compensation:
67% goes to PreK-12 Teachers
11% goes to Paraprofessionals and Teaching Aides
7% goes to Translators, Nurses, and Administrative Staff
6% goes to Custodians and Maintenance Professionals
5% goes to School Principals
2% goes to Administrative Assistants
2% goes to District Office Support Staff
The remainder supports all other expenses, such as classroom supplies, curriculum, overhead, transportation and building maintenance.
FAQ: How much of the budget goes toward administration — what value do they bring to our schools?
Our schools rely on administrative staff to manage behind-the-scenes operations so teachers can stay focused on what matters most — educating our students. Administrative operations include:
Student registration
Hiring staff
Maintaining school buildings and technology
Managing payroll and other finances
Implementing new academic programs
Building partnerships with local employers and organizations
Ensuring compliance with state and federal requirements for health, safety and curriculum.
Among six districts in our region, Marshall has the second lowest administrator-to-student ratio, despite being third largest by enrollment. While student enrollment has steadily increased over the years, the size of our administrative team has remained mostly unchanged. This means our current staff is already managing a larger workload.
Operating without a local operating levy since 2018.
Most school districts rely on voter-approved operating levies to fund daily educational expenses that state funding can’t cover. Our district has not had one in place since 2018 when a previous levy expired. In 2022, our district asked voters to revive the levy, which voters rejected.
Since then, we’ve worked hard to stretch every dollar — including federal COVID relief funds — to minimize impacts on students. Without stable, local funding, we’ll be forced to make cuts across all grade levels, impacting staffing, class sizes, course offerings, and student support.
We’re not the only district facing these challenges. Across Minnesota, a record number of districts are proposing new or renewed operating levies to their voters. Find out why 👇