Minneapolis Public School budgeting error stretched back years, officials say, as district recoups $21 million

Minneapolis Public School officials Friday morning described a yearslong pattern of billing and coding errors that had contributed to the district's budget deficit and led to staff cuts.

According to the district, an outside audit found that due to the oversight, schools weren't receiving the maximum special education reimbursements possible from the state. 

The errors stretch back to 2022-2023 and perhaps even earlier, according to Associate Superintendent of Special Education Elizabeth Keenan, and have likely cost the district tens of millions of dollars.

The district is estimated to recoup $10.7 million this year and $10.8 million next year, bringing the deficit for 2026-2027 down to $39.7 million. 

It'll allow the district to hire back approximately 100 full-time positions. 

For Eryn Warne, the principal for Edison High School, it meant she was able to buy back three educational support professional positions and a student and family advocate. 

Superintendent Lisa Sayles-Adams said that with the re-hires, the district is "reducing uncertainty for our families and ensuring that our students have the supports and resources they need and deserve."

She did not say whether staff members responsible for the coding errors would be held accountable, citing data privacy laws.

In a statement posted online last week, the district said that "we can recognize the harm that these issues have caused our students, families and staff who have lost their jobs due to budget cuts as MPS likely did not capture all of the state special education revenue possible for at least several years."

When Sayles-Adams was hired in February 2024, the district had a shortfall of $110 million that decreased to $75 million last year.