By The Hub News Staff Reports
Facing a projected budget shortfall of $7–9 million for the 2026-27 school year, the Shakopee School Board voted unanimously on Monday, June 23 to place two funding questions before voters in a special election on November 4, 2025.
The budget gap, driven by declining enrollment and state education funding that hasn’t kept pace with inflation, is expected to grow by another $1–4 million in the 2027-28 school year.
The first ballot question seeks $620 per pupil in operating levy revenue, totaling about $5 million in 2026. According to the district, if approved, this increase would be tax-neutral due to a coinciding repayment of $5.16 million in construction related bonds by the end of 2025.
The second question would raise the district’s operating levy to the state cap, adding another $288 per pupil or $2.3 million in annual revenue. This would amount to an estimated $97 annual tax increase for the owner of a $400,000 home. Importantly, the second question is contingent upon passage of the first.
Superintendent Dr. Mike Redmond acknowledged the difficulty of the financial discussions. “It is certainly more enjoyable to be talking about the many great things happening in Shakopee Public Schools than it is to be studying challenging financial budget projections,” he said. “The School Board and district leadership have examined the current financial challenges from every perspective and believe it is important for the community’s voice to be heard at the ballot box on November 4 in regard to how our community will address the impending financial challenges.”
If the first question fails, the district will need to implement $5 million in permanent budget cuts for 2026-27 and begin planning for additional cuts the following year.
In addition to the special election, the board also approved $3 million in permanent expenditure reductions for the 2026-2027 school year, which according to the district, will not affect class sizes.
“As with any financial decision, the School Board did not take this decision lightly,” noted Jeff Smith, Shakopee Board Chair. "We’ve appreciated the feedback from the community throughout the spring, including in the 2025 Community Conversation, on considerations to addressing the financial challenges common to school districts across the state. Schools are a partnership with the community. One can’t thrive without the other. It's crucial we retain our dedicated staff, support each and every student and maintain the quality educational experiences and manageable class sizes we, as a district, have worked so hard to provide, regardless of statewide challenges.”
Roughly 1,000 people participated in a recent district survey, with 56% favoring a levy and 21% requesting more information. A copy of the Community Conversation presentation from the June 9th board meeting can be found here.
The special election will take place on Tuesday, November 4, from 7:00 a.m. to 8:00 p.m. at West Middle School, 200 10th Ave E., Shakopee.