North Dakota's Large School Districts Face Budget Deficits

Enrollment declines and state funding formulas contribute to budget challenges in Fargo, Bismarck, Grand Forks, and Minot

Apr. 8, 2026 at 11:41am

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Public school districts in Fargo, Bismarck, Grand Forks, and Minot, North Dakota are dealing with budget deficits for the current or upcoming school years. Declining or stagnant enrollment, along with increases in student needs, have tightened budgets, while state funding formulas for areas like special education have not kept pace with rising costs. The districts are making budget cuts to staff and student programming to address the shortfalls.

Why it matters

The budget challenges facing these large North Dakota school districts reflect a broader trend of public schools grappling with enrollment changes and inadequate state funding. As districts work to balance their budgets, there are concerns about the impact on educational quality and student outcomes.

The details

The Fargo district has a $2.5 million projected budget deficit for the 2025-2026 school year and is expecting to make more than $5 million in cuts. The Grand Forks district is projecting a $4.4 million deficit and has approved $4.4 million in budget cuts. While Minot and Bismarck are not planning major reductions, Minot is projected to end the current year $470,000 in deficit, and Bismarck is projecting a $1 million deficit for 2027-2028. District leaders cite declining or stagnant enrollment, increased student needs, and inadequate state funding formulas, particularly for special education, as key factors driving the budget challenges.

  • The Fargo district has a $2.5 million projected budget deficit for the 2025-2026 school year.
  • The Grand Forks district is projecting a $4.4 million deficit for the upcoming school year.
  • Minot Public Schools is projected to end the current 2026 school year $470,000 in deficit.
  • Bismarck Public Schools is projecting a $1 million deficit for the 2027-2028 school year.

The players

Cory Steiner

Superintendent of Fargo Public Schools.

Terry Brenner

Superintendent of Grand Forks Public Schools.

Darin Scherr

Business and Operations Manager for Bismarck Public Schools.

Laura Dokken

Business Manager for Minot Public Schools.

Brandon Baumbach

Business Manager for Grand Forks Public Schools.

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What they’re saying

“It (is) as simple as a very stable enrollment that is not growing and increased expenses. And increased expenses aren't just about salaries. It's everything from turning the lights on to cleaning the buildings. Transportation is a huge cost for us. Those things continue to go up, and when your enrollment stays steady — that's a good thing to be steady — but it also means you're not bringing in more revenue.”

— Cory Steiner, Superintendent of Fargo Public Schools

“What's really tough about that … is you're already geared up for the year. You have your contracts extended to your educators. You have, in a lot of ways, contracts for curriculum and stuff like that. So you're locked in for all the kids you thought were going to be there. And if they're not there, well, you (have) still got to spend the money, but now the revenue isn't coming to match it.”

— Brandon Baumbach, Business Manager for Grand Forks Public Schools

“There's no way that the weighted formula from the state even comes close to paying the amount of money that it costs to educate that student. We're seeing a rise of students with behavioral needs. … And it just takes more adults and more resources to teach those gap skills so that those students can do well in an included classroom versus a resource room.”

— Terry Brenner, Superintendent of Grand Forks Public Schools

What’s next

District leaders in Fargo, Bismarck, and Grand Forks say they are already making budget adjustments this year to avoid major cuts to staff and student programs in the future. They hope to work with state legislators to address funding formula issues, particularly for special education, during the next legislative session.

The takeaway

The budget challenges facing these large North Dakota school districts highlight the broader financial pressures public schools are facing due to enrollment changes and inadequate state funding. As districts work to balance their budgets, there are concerns about the potential impact on educational quality and student outcomes if significant cuts to staffing and programs are required.