Our Challenges
A growing gap between state funding and student needs
We can’t cut our way to student success
We’re proud of the progress we’ve made in student achievement, career and technical education, and student support despite the rising cost of education. Over the past few years, the school district has made more than $1.1 million in budget cuts to address rising costs and projected deficits that have impacted staffing, programs, and student learning. This includes the following:
11 — staff members across the Elementary, Middle and High School
1 — Administrator
1 — Technology staff member
3 — Bus routes
2 — Custodial staff
For the 2025 - 26 school year, higher costs have forced the district to plan for more than $500,000 in additional cuts, which will impact programs, student services and class sizes.
We work to control costs in many ways, including cost-sharing through the Lakes Country Service Cooperative and the Lake Agassiz Education Cooperative, but it’s still not enough to close the gap.
Despite our best efforts to manage costs, the district still faces future deficits that will force additional reductions over the next two years — putting at risk the programs, services, and staff our students count on.
Why is DGF School District facing a deficit?
Like most Minnesota districts, we rely on the state for the majority of our funding. In 2024-2025, this made up 89% of our total revenue. Unfortunately, the formula that determines the amount of funding DGF receives has not kept pace with inflation for over 20 years.
Today, we receive about 19% less per student than we did in 2005 (adjusted for inflation).
With funding falling short, schools like ours have only two options to balance the budget each year. The quickest is cutting spending — something we’ve already done. But the more we cut, the more it hurts what matters most: teachers, classes, and support programs. That means fewer teachers, bigger class sizes, and fewer opportunities for students in and out of the classroom.
The only other option is to seek alternative sources of funding. That’s why on Nov. 4, 2025, DGF Schools will ask voters to consider a local operating levy to stabilize district finances and keep our schools ready to meet student needs.
