Duluth schools trim jobs and program funds after federal support drops

Duluth Public Schools has shifted another layer of its 2026-27 budget plan, keeping some positions that had been on the chopping block while adding new cuts to jobs and restricted program money after federal support came in lower than expected. The latest adjustments hit funds tied to targeted programming, a change that could ripple through student support services and staff assignments even as district leaders try to shield classrooms.

The June 3 update said the district is revising restricted funds tied to state and federal allocations, not its general operating budget. That matters because those dollars are designated for specific uses, including programs that support student interventions, enrichment and other targeted services. The district said its Title I, II, III and IV funding will fall by 12.69 percent, a loss of about $374,927, while Title VI American Indian Education funding will drop 75.5 percent, or about $151,000.

Those reductions land on top of a budget fight that has been building for months in ISD 709. On March 24, district leaders said they had finalized a plan to cover a $4 million budget gap by cutting about $4.2 million for the 2026-27 school year. At that point, the district said rising costs for supplies, insurance and specialized services had outpaced state and federal funding, including a 15 percent jump in insurance premiums and higher special education costs. On April 21, the district put the estimated general fund savings at $4,223,067 and said it was balancing reductions with reallocations, including the use of restricted Title money to preserve student supports.

The new restricted-funds update also said the district’s Achievement and Integration budget is moving onto a three-year self-sufficiency plan, with supplements dropping by $200,000 in fiscal year 2027 and by $100,000 in each of 2028 and 2029. Because those restricted funds primarily pay for personnel, the district said the changes will lead to staff displacements. Earlier reporting said the district was already working through an estimated 43 displaced positions, and Superintendent John Magas has said a possible November referendum could help support both the district and displaced employees.

Duluth Public Schools must keep a balanced budget each year to avoid statutory operating debt, which would tighten financial flexibility and invite more state oversight. With the district’s fiscal year running from July 1 through June 30, leaders are still reshaping the spending plan ahead of a planned June 16 budget adoption, and families across Duluth can expect more staffing and program changes before the year’s end.