Columbia Heights schools face multimillion-dollar funding shortfall

Minnesota made school meals free for every child in 2023. Now, leaders of a Twin Cities school district leaders say an unintended consequence could cost them millions.

Zena Stenvik, superintendent of the Columbia Heights Public School District, says students and families are still recovering from months of uncertainty during Operation Metro Surge. 

Now another challenge is landing on the district's doorstep: a $3.6 million budget shortfall for 2026-2027 school year. Stenvik says that is equivalent to about 80% of teachers being cut from just one elementary school. 

The problem, they say, is how the state measures poverty. A change triggered after universal free meals went into effect.

"With that change came changes on how compensatory revenue is calculated," said Stenvik. 

Compensatory revenue is state funding program designed to provide additional resources to school districts to serve students from lower-income families. 

The state used to calculate revenue based on the number of students who qualify for free or reduced lunch. But once meals became free, the state turned to counting families enrolled in federally funded government assistance like Supplemental Nutrition Assistance Program and Medicaid. 

Stenvik says not all struggling families are enrolled in those programs. 

"Relying solely on 'direct certification' for programs such as SNAP and Medicaid is missing many children across the state of Minnesota who need support," she said. 

Simply put, she says the need is still there, but now with less funding. Dr. Brian Zambreno, superintendent of the South St. Paul School Public School District, says they are staring down the barrel of a $1 million loss. He said that's about cutting 10 teachers.

Zambreno said the most frustrating thing is that they don't know for sure what the impacts will be but his district plans to prevent immediate cuts to staff. 

Both district leaders say the losses can be avoided if lawmakers extend the temporary fix already in place. They say it allows schools to continue receiving the same funding from previous years until a long-term solution is found. The temporary safety net is set to expire soon, but they say there is hope lawmakers will step in. 

Last year, a task force was created to take a closer at the funding system. This week, the group said a statewide survey shows many people support extending temporary relief.