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School budget deficits a community-wide problem

Just a couple weeks ago, in a meeting room filled with concerned parents, the New Ulm School Board made the decision to cut the school district’s budget by $1.98 million.

The cuts included a combination of elimination and reductions of both school programs and staff. Officials said the district had been deficit spending for three years. Among other things, declining enrollment, rising employee contracts, insurance and state mandates were blamed for the deficit.

“I am hopeful that looking at cuts this deep will help stabilize where we are at,” Superintendent Sean Koster told the crowd at the meeting. “I do not think anyone sitting in this room takes these conversations lightly.”

Does this sound familiar? It should.

A couple of months ago, the Marshall Public School Board approved a final list of district cuts to take place next school year. The list of cuts, according to the district, would reduce expenditures by a minimum of $1.8 million for 2026-27 with district-wide staffing reductions, along with the elimination of some programs and other budget adjustments.

“These decisions were made after careful consideration and a commitment to balancing fiscal responsibility with educational quality. None of the decisions that have been made were made lightly or without consideration in multiple scenarios and potential cuts,” School board Vice Chair Sara Runchey said after the board’s approval of the final cuts.

She also admitted that “there is not a single reduction that is easy, or will impact student or staff.”

Marshall’s school board decision followed November’s failed $2 million, 10-year operating referendum. Voters rejected the referendum by 54%-46%.

The school districts in Marshall and New Ulm are not the only one facing sever budget dilemmas.

Koster cited that 40 Minnesota schools go out for a referendum every year, blaming the lack of funding from the federal and state governments.

Over the past year, the Trump administration cut roughly $80 million from the department of education. These changes began in March of 2025 with Trump signing an executive order, planning to cut funding for education and moving educational responsibility to each state. Additional cuts were made in May. Several sources estimate federal money accounts for 10% of funding for public education in Minnesota.

The Minneapolis Star Tribune reported on Monday that numerous Minnesota school districts are facing sizable budget gaps and uncertain funding gaps. Minneapolis Public Schools is poised to eliminate 187 full-time positions.

Meanwhile, back here in Marshall, criticism toward the school board and district officials was swift and intense. Most of that criticism was directed toward the decision to eliminate the gymnastics program. Supporters of that program cited disbelief and disappointment in that decision.

One letter to the editor published in the Independent accused school officials of losing trust over the reductions. It suggested more reductions at the district office. Another letter writer shared a Star Tribune story on the Bemidji school board reversing a decision to close one of district’s elementary schools because it listened to the community. He claimed the Marshall school board did just the opposite.

In his monthly column in the Independent, Superintendent Jeremy Williams attempted to address those criticisms of the cuts. He said the school board and the district did listen to the community.

“Every position, program and budget area was reviewed, and there was no easy choices,” Williams wrote.

And therein lies the rub. Like households facing budget deficits, the Marshall district along with districts across the nation and Minnesota are currently or will be making difficult decisions. There are only two ways to address budget deficits — borrow (raise taxes) or make difficult decisions over spending.

The Marshall district attempted the borrowing route asking for the $2 million in the referendum. The majority of voters said no. The referendum failure occurred even after various public informational events were held before the vote. The Independent sent three representatives to one event hosted by the Marshall Chamber of Commerce. Only a handful of people bothered to show up.

Also, seeing any members from the public at school board meetings is a rarity.

After much discussion, the Independent published an editorial in support of the referendum. Right or wrong, that decision was made knowing of possible tough decision ahead if the referendum failed. In the end, those tough decisions were made.

Unfortunately, more difficult decisions will have to be made in the future. Solutions nor extra funding don’t seem to be on the horizon in St. Paul or Washington, D.C.

While district officials and the six members of the school board took the heat for the budget cut decisions, this is a community-wide predicament. Our schools make up the heart-beat of the community. Our schools are a lot more than classroom work. It’s activities that leave life-lasting impressions. What students accomplish in school ultimately sets them on a path that leads to careers and success or failures in life.

Ultimately, members of the community will need to step up and decide the future of what schools can continue to offer to our youth and still live within their means.

Three seats on the school board are up for election this November. Who wants to step up and take some heat for difficult future decisions?

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