Five-Year Forecast:
General Fund

Consistent with prior years, District administration used a combination of "level-services" and "revenue-based" budgeting to update the five-year General Fund forecast for FY2027–FY2031. In practical terms, the model assumes the District will continue providing its current educational programs and support services, with adjustments for projected revenues, enrollment, contractual obligations, and inflationary cost increases.

Users of this information should assume that in all years of the forecast, the District maintains the same number of staffing across all employee types, maintains the same class-size ratios, and has the same level of revenue authority as current law. This approach, often referred to as incremental budgeting, is standard practice for Minnesota school districts and differs from other methodologies such as zero-based budgeting, where all areas of the budget are scrutinized, adjusted, and built from scratch each year.

Districts typically use the "cohort survival" method, applying a historical growth factor to each grade level. The administration has used a five-year weighted average with a slight pro-rating factor for conservatism. The administration is taking a conservative approach with flat enrollment assumed for FY2027 through FY2028.

While current enrollment in every grade band (K–5, 6–8, and 9–12) exceeds projections, the current kindergarten cohort of 562 is the second lowest of the past ten years and the lowest of the past eight. Local and national birth rates continue to decline, which reduces the pool of school-age children within District boundaries.

The single largest source of General Fund revenue — accounting for an estimated 42.5% of FY2026 operating revenue. It supports classroom instruction, paraprofessional support, administrative services, transportation, custodial services, utilities, insurance, and instructional supplies. The per-pupil formula is set by the legislature each biennium; FY2027 is the final year of the current biennium.

In May 2023, the Legislature approved a 4.0% increase ($275/APU) for FY2024 and 2.0% ($143) for FY2025. For FY2026 and beyond, the formula is indexed to inflation via CPI, with a floor of 2.00% and a cap of 3.00%. The administration is aligning estimates with MDE inflation projections:

In November 2017, Edina voters authorized an additional $2,075 per pupil, indexed annually for inflation through 2027. For FY2027, the District's referendum authority will be certified at $2,335 per pupil.

In 2023, the State amended its Referendum Revenue statute, allowing school boards to renew existing operating referendums without voter approval. At the July 14, 2025 Regular Meeting, the Board adopted a resolution to renew for ten years beginning with taxes payable in 2028, providing financial stability through fiscal year 2038.

Special education revenue reimburses a portion of eligible expenditures, but the formula does not cover the full cost — creating the "special education cross-subsidy". With 2023 legislative changes, the State's share increased from 6.43% to 44.00% in FY2024 (rising to 50.00% in FY2027), providing approximately $4,000,000 of additional revenue in FY2024 alone.

The five major categories above represent 81.85% of projected FY2027 General Fund operating revenue. Other sources include operating capital, categorical state aid, local levy categories, non-pupil related state aids, locally generated revenue, investment earnings, and federal revenue. These sources are forecast to increase by an average of $193,716 per year (~0.80%).

Classroom staffing is determined using standard student-to-teacher ratios: 20–22 in K–1; 22–25 in grade 2; 24–26 in grade 3; 25–27 in grades 4–5; 28.15 in grades 6–8; and 30.85 in grades 9–12. Licensed staff also include teachers on special assignment, counselors, media specialists, psychologists, licensed nurses, social workers, and special education staff.

Approximately 70% of the General Fund budget is dedicated to licensed staff salaries and benefits; the remaining 30% supports administration, paraprofessionals, transportation, custodial/maintenance, and technology services.