THE NEED
These are old and deteriorating buildings that need to be repaired and updated for the sake of protecting the community's investment.
Our schools are aging and in need of extensive repairs.
The Funding Challenge
Byron Public Schools has done well to maintain stable finances for many years largely because enrollment, and the funding that comes with new students, was growing. Growth has slowed in recent years and many factors have combined to eat away at our fund balance, or savings account. A structural deficit led to more than $3 million in combined budget reductions last year and this year. More cuts are on the horizon without additional revenue.
Rising Costs, Static Revenue
Our district has experienced several financial pressures:
State revenue increases haven't kept pace with inflation – had state funding increased by the rate of inflation each year since 2003, 2025 funding would be $8,543 per student, $1,262 more than actual – with 2,324 students, that’s the equivalent of nearly $3 million annually
Byron Public Schools received the third lowest state funding among Minnesota's 331 school districts for the 2023-2024 school year. Our district faces a significant disadvantage compared to neighboring communities while dealing with the same rising costs as schools statewide.
Already Taking Action
New state mandates like paid Family Medical Leave and unemployment benefits came with little or no funding
Enrollment (and associated revenue) growth has slowed
Some costs are increasing at a rate greater than average inflation
Additional expenses from new state mandates, such as paid Family Medical Leave, unemployment, etc.
Rising Costs, Static Revenue
In 2023, the State of Minnesota approved a significant increase in revenue for schools, for which we are thankful. Unfortunately, the state also increased the number of unfunded or underfunded mandates. By some estimates, there were more than 60 new mandates for school districts. Some costly examples:
Unemployment pay for hourly staff during summers
Paid Family Medical Leave
Employer increase in Teachers Retirement Association contribution
New curriculum requirements with no funding for curriculum materials and teacher training
Our enrollment numbers have leveled off since 2020 and have even experienced a slight decrease in recent years. This is due to several factors, including lower birth rate, a move during the pandemic by families to homeschool children, and competition from private schools.
Other budget impacts include:
Increased costs of employee salaries and benefits
Increased costs related to purchased services including transportation
Increased costs related to inflation
Byron has already made difficult decisions to balance the budget:
$3+ million in budget cuts over the past two years
Operating with minimal reserves after spending down the fund balance (the district's savings account)
The upcoming referendum represents the district's effort to address these structural funding challenges while maintaining educational quality for Byron students.
Bank Account Drained by 2027
If nothing is done, our budget forecast anticipates the district to be in “Statutory Operating Debt” (SOD), or -2.5% of the annual expense budget, in a few short years. Once in SOD, a school district loses some autonomy to the state of Minnesota.
