Minneapolis Public Schools’ officials leave most questions unanswered during rare press conference

Minneapolis Public Schools leaders laid out on Friday how the district will spend $10.8 million in surprise revenue following an accounting maneuver to yield more state special education money, with the funds going to a mix of adult ed, academic programs and for higher-than-expected insurance costs. 

District officials answered four questions following about 30 minutes of prepared remarks by School Board Chair Collin Beachy, Superintendent Lisa Sayles-Adams and two other district officials. 

Unanswered: Why the district went years without making a similar accounting adjustment, thus potentially costing tens of millions of dollars over the years, or how the district’s finance department became so chaotic and dysfunctional in recent years. 

District officials have not explained why former senior finance officer, Ibrahim Diop, remained employed until January, when he resigned, despite two district investigations into his department, two letters of reprimand and a performance improvement plan. Nor has the district addressed in any detail how it came to be assessed over $5.3 million in tax penalties over the past four years, with the most recent just last month. Or what happened in the case of nearly $3 million owed to an employee health care trust account, after which a police report was filed. 

The recent revelations emerged from a highly-redacted investigative report from the law firm Greene Espel, which the Reformer obtained through a public records request.

Donnie Belcher, a spokeswoman, said the district is “not able to comment on or respond to questions about specific employees or other non-public information.” 

For next school year, the district will receive $10.8 million in additional funding from the state of Minnesota.

The revenue increase comes from an adjustment to how the district spends its federal special education funding. By changing which expenses are paid for by federal funds and which are paid for by state funds, the district will be able to increase its state special education allotment.

Like most school districts, Minneapolis has to use general education money to subsidize mandated special education programs. The extra state money for special ed will therefore free up some general education money that will no longer have to go to special ed.

The district is using the money to restore cuts that were part of its initial budget proposal in February. About $5 million is being used to keep positions at the district’s middle and high schools that the district had planned to eliminate, and another $2 million is being used at the district’s elementary schools with the highest percentage of racial minority students.

The district will use about $1.4 million to cover higher insurance costs next year.

About $1.6 million of the funds will be used to subsidize the district’s adult education program. Historically, that program has been self-supporting. 

The district has known since last August adult ed was facing a reduction in state and federal aid. But in September, the district significantly increased pay for adult education teachers as part of a new collective bargaining agreement. The plan was to eliminate 17 full-time positions in adult ed. Instead, the district will now use general education funding generated by its K-12 students to cover some of the cost of adult ed next year.

In April 2025, Diop, the former senior finance official, announced a team to look into obtaining more special education funding. The announcement came after an audit of the district’s special education services by the Council of Great City Schools. 

Last year, the district received an additional $15 million in state special education aid, including $5 million that came from increasing the rate that it bills Medicaid and other school districts for MPS-delivered services like occupational and speech therapy.

Diop’s tenure, which ended Jan. 2, is now under fresh scrutiny following the revelations about the health care trust fund and IRS penalties.