Anoka-Hennepin Schools Launches Phase 3 of Budget Realignment, Targets Final $8 Million in Reductions

Anoka-Hennepin Schools Launches Phase 3 of Budget Realignment, Targets Final $8 Million in Reductions

The Anoka-Hennepin School District, Minnesota’s largest, has entered Phase 3 of its multi-year Budget Reduction and Realignment process, a critical step to ensure financial stability for the 2026–27 school year. At a School Board work session held Monday, Sept. 8, district staff presented draft options to address the remaining $8 million shortfall, narrowed from an original projected deficit of $15 million.

A Multi-Year Challenge

The current phase is part of a broader fiscal strategy that began in 2024, when district leaders faced an initial $26 million budget gap for the 2025–26 school year. The financial strain has been driven by several converging factors:

• The expiration of one-time federal pandemic relief funds.
• Higher-than-budgeted employee contract settlements.
• Rising operational costs, including inflationary pressures on transportation and utilities.

To date, the district has already completed two significant rounds of reductions:

• Phase 1 (early 2024): Cut $5.1 million, including roughly 40 positions and reductions in operations such as technology and transportation.
• Phase 2 (late 2024): Achieved $9.04 million in savings, eliminating more than 200 central office and administrative roles, restructuring leadership, drawing on fund balance reserves, and canceling $5 million in planned strategic investments for 2026–27.

Combined, the first two phases have resulted in more than $14 million in cuts, largely focused on administration and central services in order to minimize classroom impact.

Community Input at the Center of Phase 3

Phase 3 is now focused on closing the final $8 million gap. District leaders emphasize that community participation will be critical in shaping the outcome.

A series of open-house style meetings will be held at middle schools across the district in late September and early October. Each session will include a short presentation, followed by opportunities for residents to meet directly with district staff and School Board members, ask questions, and provide feedback.

District officials have stated that protecting classroom instruction and supports for younger learners remains the top priority, but they caution that the remaining reductions will involve difficult choices. Superintendent Cory McIntyre has noted that the process is designed to balance fiscal responsibility with the district’s commitment to maintaining high-quality education.

What’s Next

The School Board will receive updated recommendations at its Sept. 22 meeting, followed by further refinement of the Phase 3 plan after public input is gathered. Final approval of the reductions and realignments is expected later this fall.

For more information, residents can view the Sept. 8 work session presentation and track meeting updates on the district’s budget process webpage.

MinneapoliMedia