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Minneapolis Public Schools passes first balanced budget in years

Minneapolis Public Schools says it has closed its long-looming $33 million deficit by voting on a balanced budget for the first time in years.

MINNEAPOLIS - Kids are out for the summer but leaders in the Minneapolis School district are planning ahead for the fall.

With two referendum questions on the November ballot-- a part of the operation costs could come from you, the taxpayer.

The school board passed its first balanced budget in years on Tuesday and the Chief Financial Officer with the district says it was a huge effort from the staff district-wide.

"Yesterday the vote I think, it was a big sigh of relief for us," Ibrahima Diop said. "$33 million is not a small amount to close in one year."

A deficit of $33 million has clouded the district since eight to ten years ago. Diop is starting his third year with the district but says he blames spending decisions that did not reflect the shrinking district from before his time.

"Our enrollment dropped, our expenses did not necessarily drop," Diop said. "We kept them still at a higher level."

To decrease spending, the district has decided on reducing 300 positions, 165 of which are teacher positions. This does not necessarily mean that 300 people are going to be let go from the district, but it does mean some jobs will be rolled into another and responsibilities will be re-evaluated and re-allocated, ultimately resulting in a number of layoffs.

The district is also consolidating its school start times at 20 schools to save money on transportation costs on what is currently a scattered schedule.

"Everyone was uncertain about their future, $33 million is not a small amount," Diop said. "It's a huge amount for a school district."

Now with the gap closed, Diop says they're focused on avoiding any repeat situations.

"We have to live within that revenue and at the end, if anything, it has to be a one to two percent overage," Diop said.

There will also be a referendum in November. Diop explains the money from the referendum will be treated as an investment in the future of the district. The $30 million from the referendum, if passed, the money will better the district to make sure the it doesn't hemorrhage any more enrollment to competing school districts or private schools.

"The referendum will be providing revenue for us to invest in these areas, thereby furthering the district in our quest of growing market share and being relevant," Diop said.

The referendum will be just two questions and will involve increasing property taxes.

If you would like to see how the budget affects your school, MPS has a tool that breaks down the budget. You can find that here: http://www.mpls.k12.mn.us/explore_the_budget

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