Facing a nearly $5 million budget shortfall driven by declining student enrollment, the St. Paul Public Schools board voted 6-1 on Friday, Oct. 30, 2026, to approve a revised budget plan that avoids midyear teacher layoffs.
The decision came after intense public pushback from educators and community members following an Oct. 20 board meeting where initial proposals called for cutting roughly 16 full-time English Language Learner teaching positions. District officials reported 542 fewer English learner students enrolled this year than anticipated, creating a $4.9 million funding gap. School officials attributed the attendance drop largely to Operation Metro Surge.
Early Retirements and Open Positions Close the Gap
Rather than executing midyear layoffs—which would have been unprecedented for the district—administrators and the St. Paul Federation of Educators crafted an alternative package. Superintendent Dr. Stacie Stanley presented the plan to the board at a special Friday meeting.
Under the approved measure, English language teachers who are 55 and older with 15 years of regular service in the district will be offered early retirement. Those who take the option will receive $35,000 in a health savings account and have up to 150 sick days paid out. Their last day is scheduled for Nov. 13.
The district will also leave about 12 open positions unfulfilled among English Learner teachers, assistants, and the central office. The plan brings the district’s fund balance down to 5.01%. District policy requires a minimum fund balance of 5% of the general fund, with approximately 80% of the budget devoted to personnel.
“I think it is really a positive,” Dr. Stanley said, noting that some educators delay retirement while trying to maintain medical insurance. “We have teachers who are waiting for a long time to retire and I really believe that we were able to meet some of the needs of those teachers.”
Uriah Ward pointed to union members stepping up as the key factor preventing widespread terminations. “The reason why we are able to vote on this recommendation today and consider this option where we’re not having to do those large number of layoffs is because SPFE members are stepping up to accept early retirement,” Ward said. “And in some way taking the place of those teachers that would have been subject to layoff.”
Teachers Union Welcomes Agreement Protecting Educators
The St. Paul Federation of Educators welcomed the agreement in a statement released after the vote, praising the board for transparently addressing financial challenges and partnering with the community to protect students and staff.
“The Saint Paul Federation of Educators and Saint Paul Public Schools have reached an agreement to avoid proposed mid-year termination of EL teachers. This agreement was approved by the board of education tonight at a special meeting of the board. Our SPPS Board of Education made the courageous decision to be transparent around the financial challenges the district is facing, and to trust our community as a partner in seeking solutions. Working together, SPFE, SPPS, and the Board of Education were able to find creative solutions to these terrible challenges, and protect students, families and staff.We know that this will not be the last crisis our public schools will face. We hope the collaborative process that was built to solve this crisis will be the framework for the future as we move forward.”
Not all board members shared the optimism. Brandon Lowe cast the sole dissenting vote, raising concerns about how closely the district will hover near its 5% fund balance threshold amid rising costs. “We’re still relying on uncertain things in incredibly uncertain times,” Lowe said.
Erica Schatzlein, lead negotiator for the teachers’ union, also cautioned that the agreement is not a permanent fix. Schatzlein characterized the deal as a temporary Band-Aid that leaves probationary teachers vulnerable in the spring and requires further staffing reductions by the end of the school year depending on retirement numbers.
Halla Henderson emphasized the difficult choices facing the district. “We have cut, right? We’ve cut just about as far that we can, and now we are at the place where we are cutting at the classroom,” Henderson said. “It’s here, it’s today. And we don’t have any other wiggle room. We have nothing, no – there’s nothing to pass off to the next budget cycle.”
Looking ahead, Superintendent Stanley stated that the district is partnering with an outside organization to recruit students back into the system, though officials acknowledge that future budgeting years will remain challenging.
