Byron, MN (KROC-AM News)- The Byron School District is preparing to take drastic steps to address a large budget shortfall. 

See Also: Rochester School District Uses New MN Law to Extend Tax Without Referendum 

That’s according to a letter sent to the school district community Sunday afternoon by Byron Public Schools Superintendent Dr. Mike Neubeck. 

The letter cites the recent discovery of a sizable budget deficit that is being exacerbated by rising costs and declining enrollment. It also lays out a timeline of when district leaders will address the budget issue. 

Byron School District Facing $1 Million Budget Shortfall

A special session of the school board and a vote on the reductions this month are included in the timeline. Nuebecks’s letter states the district is facing a budget shortfall of more than $1 million. 

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It also says health insurance premiums for the district are set to increase by 28%, which equates to $600,000 in additional expenses for the district. The 28% hike in premiums follows a 40% increase that occurred last year, the letter states. 


Neubeck also says the district’s enrollment is projected to decline by 20 students, which leads to a $200,000 loss in state funding. 

Byron School District Planning Staff Cuts to Address $1M Deficit

In order to address the shortfall the district plans to reduce its personnel, Nuebeck’s letter says. The School Board is set to take up the reduction measures for the first time during a study session Monday night. 

District leaders will then hold a community meeting about the spending reductions at the Byron High School Auditorium at 6pm on Tuesday. 

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Board Members will then hold a special session on May 13 to take action on recommended staff reductions and other spending adjustments before finalizing the cuts during a regularly scheduled meeting on May 20. 

The district has launched an online survey for community members to provide their feedback. It’s available by clicking here and is set to close on Tuesday.

Read the full letter from Byron Public Schools Superintendent Dr. Mike Neubeck below: 

Dear Byron School Families and Community,

As we plan for the upcoming 2024-25 school year, it is important to keep our community informed about the significant financial challenges our district is currently facing.  Some of these challenges include:

  • District Budget Shortfall: While preparing for the 2024-25 school budget, a budget shortfall of $1M+ was identified for the 2023-24 fiscal school year.

  • Health Insurance Increase: We were informed in mid-April of a 28% increase in health insurance premiums, amounting to approximately $600,000 for the district. This follows a 40% increase from the prior year.

  • Projected Enrollment Decline: We are anticipating an enrollment decrease of 20 students next year which equates to approximately $200,000 less in State funding.

Many districts throughout the state find themselves in similar situations and are making budget reductions and adjustments.  Our focus has been to better understand our present financial situation and develop a plan to be financially stable in the future.  We have consulted with our financial advisors and are utilizing their enrollment and budget projection models to establish a comprehensive view of our current state and future financial projections.  We have also begun a series of strategic budget discussions at the leadership level and are exploring all possible avenues for cost-saving measures that do not compromise the quality of education for our students.

The timing of these financial updates has posed additional challenges.  We are taking steps to manage this as efficiently as possible and are exploring all avenues to mitigate impacts on our district’s operations and our commitment to excellence in education.


  • School Board Work Session: We will be presenting this information at our School Board Work session on Monday, May 6 at 5:30 PM in the Byron Middle School Auditorium.

  • Community Meeting: We will be holding a public meeting on Tuesday, May 7 at 6PM at BHS Auditorium, where we will discuss these issues in detail, answer your questions, and gather your feedback.

  • School Board Special Session: Monday May 13 at 6pm at the Byron High School MPR to take action on recommended reduction and adjustments.

  • School Board Meeting: Monday, May 20 at 6pm at the Byron High School MPR to take action on personnel reductions.

  • Community Survey: To gather your insights and suggestions, please contribute by filling out our survey at Complete by May 7, 2024

We understand the concern that news like this might bring.  Rest assured, maintaining high quality education and minimizing the impact on our students is our top priority.  We are committed to navigating these challenges with transparency and open lines of communication.  Regular updates will be provided as we progress through these fiscal adjustments.

Thank you for your attention to this matter and for your continued support and understanding.

-Dr. Mike Neubeck Superintendent Byron Public Schools

More Minnesota News:

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Gallery Credit: Carly Ross


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