Tag: Signals

  • Minneapolis School Board Signals Potential School Closures – The 74

    Minneapolis School Board Signals Potential School Closures – The 74


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    The Minneapolis school board has formally asked Superintendent Dr. Lisa Sayles-Adams for information that could lead to school closures. They passed a resolution to the effect at a recent meeting.

    The board first drafted the directive —which asks for an initial report to the board by April 2026 — at two day-long meetings in June and August. The planning follows years of discussion about closing schools in a district with 29,000 students but the capacity for 42,000 and thus a bevy of half-empty schools.

    Even as enrollment declines at a school building, the fixed expenses for building staff — like principals, secretaries, nurses, librarians, culinary workers, custodians and social workers — stay the same or go up. With so many buildings below capacity, a big portion of each Minneapolis student’s funding has to go toward covering these fixed building-level costs, draining money away from instruction and extracurricular activities.

    The board resolution comprises topics for district administrators to investigate, including efficient use of current buildings, potential changes to magnet programs, and ways to increase enrollment in the district.

    Years-long discussion about the financial burden of operating small enrollment schools

    The process for downsizing the district’s footprint has been long and circuitous.

    In October 2022, the district prepared a comprehensive financial assessment forecasting that without significant cost cutting, the district would end up draining its reserves, while expenses would exceed revenues by the end of fiscal year 2026. The district has avoided that fate by cutting services and raising class sizes, but it is still unable to balance its budget without relying on reserves and other one-time funds.

    The 2022 memo did not prescribe closing schools, but it did present an analysis showing enrollment growth alone could not overcome the district’s structural inefficiencies resulting from operating many schools with small enrollments. At the time of the analysis, Anoka-Hennepin was operating 37 school buildings while enrolling about 37,000 students. Minneapolis was operating 61 buildings while enrolling about 29,000 students. Minneapolis had about half as many students per building as Anoka-Hennepin.

    The board first publicly discussed reducing the number of schools in March 2023, when then-board Chair Sharon El-Amin asked Rochelle Cox, the then-interim superintendent, to develop a draft plan for “school transformation.” Neither Cox nor the board took action.

    Two months before current Superintendent Dr. Lisa Sayles-Adams started at the district in early 2024, the School Board passed a “transformation resolution” that directed the district to do an accounting of physical space but stopped short of calling for a timeline on school closures.

    Sayle-Adams promised to tackle “right-sizing” the district after passing a budget in June 2024, because, she said, the community asked her to address the issue.

    Low enrollment schools require more funding per student for building-level staff

    The district is contending with rising costs and operating a significant number of small buildings, as well as buildings operating below capacity. Given the rising fixed costs of operating these buildings, that leaves less money for everything else, from class size reduction to teacher pay and programs commonly found in most school districts like world languages, art, music and athletics.

    Across the district, as building-level enrollment has declined, students have lost access to services like academic support if they’re struggling; staff to address student behavior; and community liaisons to help parents connect with schools. Small elementary schools have difficulty funding full-time positions for electives like art, music and gym, while hiring part-time staff for these positions is challenging. Some elementary students have gone without these electives, or only have music or art for part of the school year.

    Enrollment declines at middle and high schools have meant fewer elective options, like world languages, dance, theater and orchestra, as well as extracurriculars. Students also lose access to advanced coursework — like AP or IB classes — when there are too few students in the school who want to enroll. Many of the district’s high schools are now sharing athletic teams because individual schools lack enough students and funding to support a robust athletics program.

    The decline in services drives some families to schools outside the district that have the services and programs they desire, compounding the enrollment declines.

    Declines in enrollment mitigated by new-to-country students

    Minneapolis Public Schools lost about 15% of its enrollment in the wake of the COVID-19 pandemic, due to a combination of factors including implementing a controversial plan redrawing school boundaries, and keeping its schools closed longer during the pandemic than any other Minnesota district, which was followed in March 2022 by a three week educator strike.

    The district has enjoyed a small enrollment increase both last year and this year. Although the district does not track the immigration status of students, the increase has been attributed almost entirely to students newly arrived to the United States from Central America. Since the 2021-22 school year, English learner students have increased from 17% of the district’s students to 23% in the 2024-25 school year, according to Minnesota Department of Education data.

    This year, the district expects to spend at least $17 million more on English learner services than it receives in funding from state and federal sources. Although the Legislature increased state aid for English learners during the 2023 legislative session, the district’s funding is insufficient to cover the cost of providing the intensive services needed by students with the lowest levels of English proficiency.

    Many of the newcomer students are also unhoused, which has led to growing costs for the district to transport students from shelters outside district boundaries, as required under the federal McKinney-Vento law. The state has started to pay the cost of this transportation under a law passed in 2023.

    It is not clear whether changes to federal immigration policy will impact the district’s ability to continue to rely on newcomers to stabilize or grow enrollment in the future.

    Future enrollment expected to decline, limiting district’s funding

    Hazel Reinhardt, a demographer hired by the district, says enrollment is likely to continue to decline in the coming years because of lower birth rates, fewer families choosing to raise children in the city, and the state’s favorable laws around charter schools and open enrollment, allowing parents to send their children to St. Paul or suburban schools.

    Reinhardt told the board in June that once parents leave for charter and private schools or open enrollment options, “precious few” districts are able to bring them back.

    Most of the district’s funding is based on enrollment, so declining enrollment has created a ballooning fiscal crisis. Growing costs for both labor and services have outpaced increases in state and local funding.

    The district continues to cut services, increase class sizes and pull from its dwindling reserve funds to balance its annual budget. The district is expected to use $25 million from its reserves this school year after using $85 million from reserves last school year.

    The district’s enrollment woes and related financial distress are not unique to Minneapolis, with similar challenges facing large urban districts like Oakland, San Francisco, Denver, Seattle and Portland. Denver and Oakland have closed a small number of schools in recent years, but not enough to stabilize district finances. And school boards in Seattle and San Francisco have walked away from closure plans after significant public pressure, leaving both districts with growing budget deficits.

    Minnesota Reformer is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Minnesota Reformer maintains editorial independence. Contact Editor J. Patrick Coolican for questions: [email protected].


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  • University of Southern California signals layoffs amid $200M budget gap

    University of Southern California signals layoffs amid $200M budget gap

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    Dive Brief: 

    • The University of Southern California plans to use layoffs and other budget austerity measures to tackle a $200 million operating deficit and gird against a massive blow to federal funding, Interim President Beong-Soo Kim said in a community message on Monday
    • On top of USC’s growing budget shortfall, which ballooned from $158 million in fiscal year 2024, officials are now grappling with federal headwinds affecting the outlook for research support, student financial aid and international enrollment, Kim said.
    • Lower federal research funding could cost the highly selective private university $300 million — or more — each year, Kim said. “To deal decisively with our financial challenges, we need to transform our operating model, and that will require layoffs,” he said. 

    Dive Insight: 

    Kim pointed out that USC isn’t alone in making painful budget decisions — but said that didn’t make the news any easier to hear. Indeed, many other well-known research universities have also been tightening their budgets and signaling layoffs amid the Trump administration’s widespread federal grant terminations. 

    That includes Stanford University, a fellow California college, and Brown University, in Rhode Island, which have both signaled potential staff reductions as they contend with federal funding shifts. Boston University, another private nonprofit, recently cut 120 employees and eliminated an equal number of vacant positions to deal with those challenges. 

    Kim did not disclose how many employees the university plans to lay off, and a USC spokesperson did not provide more details in response to questions Tuesday. But Kim said in his message to faculty and staff that USC has also taken other measures to shore up its budget. 

    The university will forego merit raises for the 2026 fiscal year, has ended certain services from third parties, and tightened discretionary and travel spending. It’s also planning to sell unused properties, streamline operations and adjust pay for the most highly compensated employees. 

    Kim, however, said it wasn’t feasible to bank on increased tuition revenue, drawing down more on the university’s endowment or taking out additional debt. 

    “Each of these ‘solutions’ would simply shift our problem onto the backs of future generations of Trojans,” Kim said, referring to the university’s mascot and student body nickname. 

    He also noted that the university could not likely count on federal funding returning to prior norms. “While we will continue to advocate for the vital importance of research and our academic mission, we cannot rely on the hope that federal support will revert to historical levels,” he said. 

    Kim’s message comes just two weeks into his tenure as the college’s interim leader, making it one of his first acts. 

    USC depends heavily on federal research funding. In fiscal 2024, the university received $569 million for federally funded research, according to a recent FAQ posted to its website. Overall, the university brought in nearly $7.5 billion in operating revenue that year and had $7.6 billion in operating expenses.

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  • Trump Sends Mixed Signals on Apprenticeship and Job Training

    Trump Sends Mixed Signals on Apprenticeship and Job Training

    President Trump issued an executive order last month instructing federal officials to “reach and surpass” a million new active apprenticeships. It was an ambitious target that apprenticeship advocates celebrated, anticipating new federal investments in more paid on-the-job training programs, in new industries and via a more efficient system.

    “After years of shuffling Americans through an economically unproductive postsecondary system, President Trump will refocus young Americans on career preparation,” federal officials wrote in a fact sheet on the order. They also emphasized that the federal government spends billions on the Workforce Investment and Opportunity Act, or WIOA, and Career and Technical Education, but “neither of these programs are structured to promote apprenticeships or have incentives to meet workforce training needs.”

    Ryan Craig, author of the book Apprenticeship Nation, managing director of Achieve Partners, co-founder of Apprenticeships for America and an occasional contributor to Inside Higher Ed, said it was the first time a president set a goal for the number of apprentices in the U.S., as far as he’s aware.

    Apprenticeships are “one of the few, perhaps the only area of education, of workforce development, where this administration has said, ‘We want more of this,’” he said shortly after the executive order dropped.

    But the excitement for an expanded apprenticeship model in the U.S. might be short-lived. Craig and other apprenticeship advocates worry that Trump’s proposed budget for fiscal year 2026 doesn’t reflect the executive order’s vision. The proposal doesn’t promise any significant new investments in apprenticeship and slashes workforce development spending over all.

    “The left hand doesn’t know what the right hand is doing here,” Craig said. “It’s not the sea change that the executive order promised.”

    Mixed Signals

    Among many highlights for advocates, the order also calls for a workforce development strategy with a focus on scrutinizing workforce programs’ outcomes, which currently aren’t carefully tracked.

    Federal officials were given 90 days to review all federal workforce development programs and come out with a report on strategies to improve participants’ experiences, measure performance outcomes, identify valuable alternative credentials and reform or nix ineffective programs. The executive order also generally called for more transparent performance outcomes data, including earning and employment data, for such programs.

    Trump’s skinny budget makes good on his promise to consolidate workforce development spending and cut programs the administration deems ineffective, but it also offers apprenticeships a small slice of that shrinking pie.

    The proposal includes a $1.64 billion cut to workforce development funding under the Department of Labor and eliminates Job Corps, a free career training program for youth, and the Senior Community Service Employment Program, which offers job training and subsidized employment for low-income seniors. The administration also proposed a new program called Make America Skilled Again, or MASA. States would be required to spend 10 percent of their MASA grants on apprenticeships. Almost $3 billion, including WIOA funding, remains to fund the program, down from $4.6 billion, Work Shift reported.

    The budget promises to “give states and localities the flexibility to spend workforce dollars to best support their workers and economies, instead of funneling taxpayer dollars to progressive non-profits finding work for illegal immigrants or focusing on DEI.”

    Craig supports offering states more flexibility and cutting “train-and-pray programs that have little to no connection to employers or employment outcomes”—but he hoped money saved from those cuts would go toward apprenticeships, which are “by definition good jobs with career trajectories and built-in training.”

    He said a mere 10 percent of block grant funding directed to apprenticeships feels “inconsistent” with the bold goals laid out in the executive order. He had high hopes Trump would consider radically changing how apprenticeships are funded, moving away from time-limited, individual grants to a more robust federal funding structure. At the very least, he believes apprenticeships should get the “lion’s share” of workforce development funding.

    “My hope is it’s just the budget proposal and that things get worked out [to be] more consistent with the executive order,” he said, “but it was disappointing to see that.”

    Vinz Koller, vice president of the Center for Apprenticeship and Work-Based Learning at Jobs for the Future, said he similarly felt hopeful about the executive order’s messaging, in particular its commitment to “further protect and strengthen” registered apprenticeships.

    The wording represented a shift in approach.

    During Trump’s previous term, the president sought to create industry-recognized apprenticeships, an entirely separate apprenticeship system to sidestep what he viewed as inefficiencies in the current system and excessive federal regulation. Koller was glad to see Trump interested in reforming and investing in the current system this time rather than making plans to “throw out the rule book.”

    But the proposed budget isn’t “backing it up,” he said.

    His organization recently put out a policy blueprint for expanding and improving apprenticeship—including calling for stronger incentives for employers and more investment in intermediary organizations that offer programs’ support—but those strategies aren’t possible without more federal funding, Koller said. The policy blueprint points out that in fiscal year 2024, the federal government spent at least $184.35 billion on higher education, while the Department of Labor’s apprenticeship budget was just $285 million.

    But Koller also doesn’t believe slashing higher ed spending is the answer, and he’s worried about the proposed cuts to workforce training and to higher ed in the administration’s proposal. He said the goal is to give learners “choice-filled pathways,” including apprenticeships and other forms of work-based learning, not to “rob Peter to pay Paul.”

    Grant consolidation and streamlining can be “positive,” he said, but “we just want to make sure that the support is there to actually do what is needed on the ground,” across program types. “We don’t want to dismantle the other aspects of a healthy educational workforce infrastructure as we build the new parts.”

    Kerry McKittrick, co-director of the Project on Workforce at Harvard University, said the budget poses a double threat to workforce development funding. Not only would the proposal cut more than a billion dollars, but the budget would also dole out the remaining funds in block grants to states, a funding structure that has been shown to lack oversight and generally decrease funding over time.

    The project’s research found “governors do want more flexibility,” she said. “At the same time, we continue to hear from them that the lack of resources is really the biggest problem with the workforce system and meeting workforce needs … There’s no way we’ll see an expansion in apprenticeship with such a massive cut.”

    Lingering Hopes

    Some apprenticeship proponents remain optimistic.

    John Colborn, executive director of Apprenticeships for America, agreed the skinny budget doesn’t seem like “a recipe for substantial growth of apprenticeship,” but he isn’t giving up on the possibility of bold changes just yet.

    He noted that the budget makes no mention of other possible funding sources for apprenticeship mentioned in the executive order fact sheet, such as career and technical education funds, so there may be plans for other funding streams in the works.

    The proposed budget also alludes to a “reallocation” of adult education funding struck from the Education Department to “better support the innovative, workforce-aligned, apprenticeship-focused activities the Department seeks to promote,” though it doesn’t go into further detail.

    He said, based on the executive order, federal officials still have time to draft a plan, and he’s going to wait until they do before arriving at any final conclusions about how apprenticeships will fare under a second Trump term.

    “It’s probably a mistake to look at the skinny budget as a blueprint for the funding of an apprenticeship growth initiative,” he said. He plans “to take it seriously, because it’s a statement of intent from the president, but to not look to it as a constraining document for how we might be thinking about growing apprenticeships going forward.”

    Shalin Jyotishi, managing director of the Future of Work and Innovation Economy Initiative at the left-wing think tank New America, emphasized that “any administration’s policy direction on apprenticeships should be judged on actions, not only words.”

    He pointed out that multiple executive orders, including a recent one on artificial intelligence education, have called for expanding apprenticeships, but some such programs have also undergone cuts under Trump. He wants to instead see renewed investments, like those Trump made in degree-connected apprenticeships during his first term, and argued the field is “ripe” for such efforts.

    “It’s heartening to see the administration emphasize the importance of registered apprenticeships,” Jyotishi wrote to Inside Higher Ed, “and education and workforce leaders will be looking for follow-through through actions, implementation, and resources.”

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  • Duke University offers buyouts and signals future layoffs as federal cuts hit

    Duke University offers buyouts and signals future layoffs as federal cuts hit

    Dive Brief:

    • Duke University is offering voluntary buyouts for employees and has frozen hiring as it braces for federal funding cuts, the institution said Wednesday. 
    • The North Carolina institution signaled that layoffs were likely in the coming months, but said it is “pursuing several employment actions now in hopes of reducing the scale of involuntary separations later this summer.”
    • The moves are in response to federal cuts and policy shifts, which could translate into funding losses for Duke between $500 million and $750 million, university officials said during an internal webinar Wednesday, according to media reports.

    Dive Insight:

    Historically, much of Duke’s research enterprise has been devoted to work on behalf of the government. Federal grant support made up nearly three-quarters of the $1.5 billion in sponsored research funds that Duke received in fiscal 2024, much of it going toward health science.

    The university, in its latest financial statement, described its medical school as “one of the largest biomedical research enterprises in the country.” And funding just from the U.S. Department of Health and Human Services — which houses the National Institutes of Health — accounted for 58% of all of Duke’s sponsored research funding. 

    The National Science Foundation and U.S. Department of Energy also accounted for tens of millions of dollars in the university’s funding. 

    Since President Donald Trump retook office, those agencies and others have been cutting and delaying grant awards at a frantic pace, including moves to cap reimbursement for indirect research costs at NIH and the Energy Department. Both funding caps have been blocked in courts — at least for now — but the Trump administration is continuing to fight the legal cases against the policies. 

    Uncertainty over the funding will likely loom for some time to come. 

    For Duke, the NIH indirect cost cap would mean $194 million in lost funding each year, President Vincent Price and other leaders said in February. 

    “Much is at stake,” the officials said then. “Our nation’s world-leading research enterprise has been enabled by — and will only be sustained by — partnership and co-investment from both the government and higher education.” 

    They also signaled at the time that “careful planning and difficult decisions” could lie ahead. 

    Today, Duke is trying to cut $350 million from its budget, according to reports of the university’s presentation, as it grapples with funding gaps under the Trump administration. 

    As it trims down, Duke has paused capital spending on buildings, renovations and other projects that are “not fully funded or deemed essential,” the university said Wednesday. 

    It’s also reviewing universitywide programs — such as technology adoption, off-campus real estate and on-campus space consolidation — for potential cost-savings.  

    Employee benefits could also be on the chopping block. 

    “A study is also under way to assess how certain changes to the university’s benefits may generate savings while protecting the program’s strong competitive position,” Duke said.

    However, Executive Vice President Daniel Ennis told employees Wednesday that the university still plans to give out merit raises and will not change its tuition grant program for children of employees. 

    Universities around the country have been scrambling in recent months to open breathing room in their budgets to cope with the uncertainty and disruption created by cuts and delays at federal agencies. Many have frozen hiring and budgets to maintain financial flexibility while others have laid off employees to cope with cuts.

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  • Ed Secretary Nominee Signals Major Shake-Up for DEI, Civil Rights

    Ed Secretary Nominee Signals Major Shake-Up for DEI, Civil Rights

    In a Senate confirmation hearing that has sent ripples through the higher education community, Education Secretary nominee Linda McMahon acknowledgedLinda McMahon President Trump’s directive to potentially dissolve the Department of Education, while facing pointed questions about diversity initiatives and civil rights protections in education.

    During last Thursday’s hearing before the Senate Committee on Health, Education, Labor and Pensions (HELP), McMahon addressed concerns about the administration’s stance on diversity, equity, and inclusion (DEI) programs in educational institutions. When pressed by Sen. Chris Murphy (D-Conn.) about Trump’s executive order banning DEI programs, McMahon stopped short of providing clear guidance on the future of student cultural organizations and ethnicity-based clubs on campuses.

    The hearing revealed mounting concerns about student data privacy and program funding. Sen. Patty Murray (D-Wash.) highlighted that the Department of Government Efficiency (DOGE) has already gained access to “highly sensitive student data” and has begun withholding congressionally approved funding meant to support schools and students.

    Democratic senators expressed particular concern about the potential dismantling of the Education Department and its impact on civil rights enforcement and disability services in higher education. When questioned about relocating the Individuals with Disabilities Education Act (IDEA) to the Department of Health and Human Services, McMahon defended the potential move by citing declining performance scores despite nearly a trillion dollars in spending since the department’s establishment in 1980.

    McMahon did make several commitments during the hearing, including a pledge to maintain the Pell Grant program, which provides crucial financial aid to millions of college students. She also addressed the issue of antisemitism on college campuses, though specific plans for addressing this concern were not detailed.

    The hearing, which was interrupted multiple times by protesters advocating for public schools and trans students’ rights, highlighted the complex challenges facing the department. McMahon acknowledged that any significant changes to the department’s structure would require congressional approval, despite the president’s stated desire to eliminate it through executive action.

    While McMahon is expected to be confirmed by the GOP-controlled Senate, her hearing has raised significant questions about the future of federal oversight of higher education, particularly regarding civil rights enforcement and diversity initiatives. The HELP panel is scheduled to vote on advancing her nomination to the full Senate floor next Thursday.

    “It’s always difficult to downsize, it’s always difficult to restructure and reorganize in any department,” McMahon said during the hearing, addressing concerns about recent administrative leaves and firings at the department. “I think people should always be treated with respect.”

    For the higher education community, the hearing left several crucial questions unanswered, particularly regarding the future of diversity programs and civil rights protections. Sen. Murphy’s exchange about student cultural organizations highlighted the uncertainty facing many campus groups: “That’s pretty chilling. I think schools all around the country are going to hear that,” he noted after McMahon’s noncommittal response about the permissibility of ethnicity-based student clubs under the new DEI restrictions.

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