
In February email, principals union expressed concerns over Rochester Public Schools' new budget model
Dubbed the "Balanced Budget Model," the district leadership says it will give individual schools more flexibility in how they spend their resources and require them to rely less heavily on decisions from the central office. The change also would result in the redistribution of state and federal funding the district receives for specific student groups.
Despite the increased autonomy for schools, the new model has prompted hesitation from Rochester's principals who are concerned about reductions taking place in their schools despite the fact that local voters agreed to provide more taxes for education during a referendum in November.
"I believe our balanced budget model comes from a place of well-intentioned district staff doing the best with the information that they have at the time," wrote Overland Elementary Principal Jared Groehler, who's also president of the principals union. "With that being said, I also want to share on behalf of our Rochester Principals Association membership some large concerns that we have with the process and the budget thus far."
The letter, dated Feb. 18, was not released to the public. The Post Bulletin obtained a copy through a records request to the district.
The Rochester School Board approved the Balanced Budget Model in January. District officials are now in the process of building the budget for 2025-26 around the new model.
The principals' letter outlined several concerns with the proposal. One is that schools are having to make cuts for the year ahead, despite the fact that local voters approved increasing property taxes dedicated to education.
Groehler highlighted that, at the time he sent the email, there was no staffing dedicated at the elementary level for reading specialists in the upcoming year. He also highlighted the fact that multiple schools were having to reduce the number of social workers.
"The thing that we are struggling with is the degree to which it seems that cuts are being made across our buildings, when we passed a referendum to avoid cuts," Groehler wrote in the email. "When messaging comes that this will keep us from making cuts, and then it seems as though we are going to have to make significant cuts (school social workers, reading specialists, instructional coaches, equity specialists, and other positions), it leaves a lot of questions. It also leaves space for a lot of narratives to be created."
Superintendent Kent Pekel responded to the principals' letter three days later, on Feb. 21. He clarified that by the time the school board approves the 2025-26 budget in June, there will be funding designated for student supports, including $516,235 for reading specialists and curriculum.
However, he also clarified that the approval of more funding during the referendum would not necessarily equate to the same staffing levels in the schools. Instead, Pekel emphasized that the district is facing the prospect of decreasing enrollment. Since school districts receive both state funding and locally-generated taxes on a per-pupil basis, lower enrollment means less funding from both revenue sources.
In other words, he attributed the reductions in staffing to shrinking student body rather than district's new funding model.
RPS's enrollment for 2025-26 is projected to be 16,441. If that proves accurate, it would be a decrease of 730 students from the current year. It also would be a decrease of just over 1,700 since the district's enrollment peaked at more than 18,000 during the 2019-20 year.
"Passage of the referendum could not shield our schools and our district from declining enrollment," Pekel wrote in his response to the principals. "During the referendum campaign we said that if the referendum passed, we would not need to raise class sizes, close schools, or make major cuts in programs. All of those things are still true. We did not say there would be no budget reductions in the years ahead."
According to a presentation on the Balanced Budget Model in January, the district's central office would control 80% of school budgets, giving individual buildings more autonomy in how they choose to spend the remaining dollars.
The model would give schools flexibility when it comes to how they fund assistant principals, how many teachers they hire beyond the minimum required to meet the standard student-to-teacher ratio, as well as in regard to decisions related to reading specialists, supply budgets, equity specialists, and professional development, among other expenses.
Part of the Balanced Budget Model also proposed the redistribution of compensatory funding and Title I funding, which is state and federal aid given to districts that have a higher percentage of underperforming students.
Minnesota law only requires school districts to spend 80% of compensatory funding on the schools that generate the revenue, meaning that the district could use the remaining 20% for other purposes. Now, however, Rochester Public Schools will be dedicating 100% of the compensatory revenue to those schools that generate it.
According to the district's presentation from January, there would be a "tighter focus on how schools can use (compensatory) funds based upon nine authorized uses." In 2023, the Minnesota Legislature amended the number of allowable uses for compensatory aid, essentially removing schools' ability to use the funding for assistant principals.
One of the other concerns outlined by the principals union was in regard to the "rigidity of compensatory funding." Specifically, Groehler's letter highlighted how there is not enough general funding to maintain the "current level of support" when it comes to assistant principals, which he went on to describe as "vital" for schools' improvement plans.
He also stressed the importance of office staff.
"These receptionists are key to the safe and welcoming learning environment that we have created," Groehler wrote. "You could call it belonging, you could call it family engagement, and many other areas."
In his response, Pekel told the principals that the Minnesota Department of Education will no longer allow compensatory funding to pay for the staffing of assistant principals. Despite that, Pekel told the Post Bulletin on April 11 that the district is working to fund those positions through other means.
Pekel also told the Post Bulletin that the recently-approved version of the balanced budget model should be thought of as an initial version "because the system can only adapt to so much change in a single year."
In a memo he released in January when the School Board voted to approve the new model, Pekel described it as a way to achieve two goals. One goal, he said, is that the model "balances the authority about funding and staffing between the school and central office levels." The second goal, Pekel wrote, is that the efficiencies accomplished through the change will "enable the school district to balance its budget on an ongoing basis."
In addition to addressing specific issues in the letter from the principals, Pekel said the changes overall are necessary in order to avoid perpetuating the status quo of lagging academic performance.
"I think that it is important to note at this critical juncture in our work that by almost every measure, educational outcomes in Rochester Public Schools have been in decline for many years — long preceding the pandemic," Pekel wrote in his response to the principals. "We are doing great work to shift that downward trajectory through changes ... However, if the changes we are putting in place do not also extend to how we use our resources of money, people, and time in our schools, we will not be able to realize the improvements in student achievement and other outcomes that I know we are all committed to."
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Yahoo
04-07-2025
- Yahoo
Rochester Public Schools is waiting to see the outcome from the $7 billion of federal funds in limbo
Jul. 3—ROCHESTER — Although The U.S. Department of Education has withheld nearly $7 billion in funding from schools across the country, it's not yet clear what kind of impact that will have for Rochester Public Schools. On June 30, the U.S. Department of Education sent a notification to state agencies, notifying them that the release of the funding was still under consideration. That update began sounding alarm bells for schools and education advocates alike. "This is not just a budget cut — it's an assault on the rule of law and our commitment to every child's right to a quality education," said Monica Byron, president of Education Minnesota, which is the statewide teachers union. "By withholding funding that Congress has already approved, the Trump administration is playing politics with our children's futures." According to the publication EducationWeek, the federal funding that has been withheld from schools amounts to $6.8 billion. RPS Communications Director Mamisoa Knutson said the district is monitoring the situation and "waiting to see what that means" for local programs. Although federal funding doesn't provide the bulk of Rochester Public Schools' budget, it still represents millions of dollars for the district. In 2024-25, federal funding comprised 4% of the district's budget, which amounted to $17.08 million. The Minnesota Department of Education provided a copy of the notification it received from the federal government to the Post Bulletin. According to MDE Communications Director Sam Snuggerud, the federal government issued an individual notice for the funding associated with each program. However, the notifications only differed in the name of the program. They read: "Given the change in Administrations, the Department is reviewing the FY 2025 funding for the [Title I-C, II-A, III-A, IV-A, IV-B] grant program(s), and decisions have not yet been made concerning submissions and awards for this upcoming academic year. Accordingly, the Department will not be issuing Grant Award Notifications obligating funds for these programs on July 1 prior to completing that review. The Department remains committed to ensuring taxpayer resources are spent in accordance with the President's priorities and the Department's statutory responsibilities." Even before the federal department issued the notice, state agencies were beginning to worry about the delay in the funding. On June 26, The Minnesota Department of Education sent a letter to its federal counterpart, asking when it could expect to receive information on the matter. MDE Commissioner Willie Jett's letter listed a number of programs that rely on the funding. They include those that aid English-language proficiency, support teacher development and retention, and provide academic enrichment opportunities "outside of school hours for students who attend low-performing schools." "At this writing, Minnesota has not received critical information for school districts to obligate federal funding in time for a July 1 deadline," Jet wrote in his June 26 letter. "While the most recent state tables posted on ED's website include updated figures, these programs are notably absent. Without this information, and with July 1 approaching, it is not possible for schools, districts, and the Minnesota Department of Education (MDE) to complete the steps needed to begin obligating these funds as scheduled."


Business Wire
01-07-2025
- Business Wire
ACI Worldwide and iNet Extend Partnership to Bolster Fintech Growth in Saudi Arabia
OMAHA, Neb. & RIYADH, Saudi Arabia--(BUSINESS WIRE)-- ACI Worldwide (NASDAQ: ACIW), an original innovator in global payments technology, today announced that iNet, the first independent Saudi Central Bank-licensed Network Service Provider (NSP), has joined ACI's Retail Payment Solutions (RPS) for Postilion program to support the Kingdom's rapidly growing fintech sector. Under this partnership, iNet will deploy and manage a Point of Sale (POS) infrastructure using ACI Postilion, an acquiring platform that enables banks, fintechs and merchants to deliver fast and seamless omnichannel transaction processing while staying compliant with evolving regulatory standards. Earlier this year, iNet secured principal licenses to operate as an independent POS NSP, allowing it to deliver POS services directly to banks and merchants. A customer of ACI since 2006, iNet will join ACI's RPS for Postilion program to broaden its market reach and service portfolio in support of this strategic leap. Today, iNet processes over 5 million transactions daily with plans to scale significantly in alignment with Saudi Arabia's Vision 2030 — a strategic blueprint to boost the Kingdom's fintech sector by fostering a cashless society and building a future-ready digital financial ecosystem. 'The rapid expansion of Saudi Arabia's fintech sector underscores the need for a resilient, locally anchored infrastructure to scale securely and sustainably," said Turki Almadi, Executive Vice President, iNet. 'iNet's POS infrastructure, powered by Postilion, combines our deep local expertise with ACI's advanced acquiring technology, enabling fintech providers and merchants with faster speed to market, allowing them to focus on their core business without being encumbered by regulatory, technological or operational challenges.' The RPS for Postilion platform empowers iNet to drive payment innovation and deliver new services such as SoftPOS, QR payments, link-based payments and digital wallets. Deployed across two PCI-compliant data centers in Saudi Arabia, its active-active infrastructure ensures high availability, minimizing service disruptions and operational risk. In support of the Kingdom's ambition to showcase cutting-edge innovation in digital infrastructure, iNet is well-positioned to be a strategic technology partner for major events like Saudi Arabia's FIFA World Cup 2034. 'Our partnership with iNet is grounded in a shared vision to simplify payments, unlock new growth opportunities and support the Kingdom's journey toward a digital-first economy,' commented Alexis Haessler, Regional Head, Middle East, ACI Worldwide. 'Together, we are creating a frictionless and interoperable payment experience and powering a modern, inclusive and future-ready financial ecosystem.' About ACI Worldwide ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernizing their payment infrastructures, simply and securely. With 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities. © Copyright ACI Worldwide, Inc. 2025 ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties' trademarks referenced are the property of their respective owners. About iNet: Integrated Networks LLC (INET). is a private organization founded in 2001, delivering state-of-the-art ICT solutions and services across multiple sectors for more than 20 years. iNet is the first independent Saudi Central Bank (SAMA)-licensed Network Service Provider (NSP). iNet offers payment infrastructure solutions and services such as NSP, payment gateway, SoftPOS, HSM services and others. It operates under highly secure environment with PCI DSS certification, SAMA certification and ISO certifications.

Associated Press
11-06-2025
- Associated Press
Vaya Space Announces $4 Million Strategic Partnership with Velo3D to Advance Additive Manufacturing for Space Propulsion
'Velo3D offers the production readiness, material capabilities, and deep technical partnership we need to bring our vision to life and deliver flight-ready engines on schedule.'— Aaron Blankenship, Vice President of Operations at Vaya Space COCOA, FL, UNITED STATES, June 11, 2025 / / -- Vaya Space, a space and defense company developing breakthrough hybrid rocket systems on Florida's Space Coast, today announced a strategic partnership with Velo3D, Inc. (OTCQX: VLDX), a leader in additive manufacturing (AM) technology known for transforming aerospace and defense supply chains through world-class metal AM. The two companies have signed a $4 million, two-year Master Services Agreement (MSA) to collaborate on high-performance additive manufacturing R&D and production. Vaya Space selected Velo3D as a key strategic partner in its propulsion development roadmap. Through the agreement, Vaya Space will leverage Velo3D's Rapid Production Solution (RPS) to accelerate production of critical propulsion system components and meet key development timelines. Utilizing Velo3D's Sapphire printer platform, Vaya Space will print parts in both GRCop42—a NASA-developed copper alloy for high-heat transfer and strength—and Inconel 718, a nickel superalloy known for strength and thermal resilience in aerospace applications. Vaya currently uses the Sapphire platform to produce the world's first expander cycle hybrid rocket engine; under the agreement, the two companies will work together to optimize Sapphire's printing parameters, increasing part quality and reducing unit cost and production time. As part of the partnership, Velo3D will serve as Vaya Space's exclusive provider of GRCop42 additive components, delivering guaranteed capacity, advanced engineering support, and Flow™ software training to streamline design-to-production cycles for propulsion assemblies including nozzles, injectors, and turbopumps. The two companies will work collaboratively to produce high-quality engine components for aerospace and defense applications faster and at a lower cost than traditionally achievable. The combination of Velo's closed loop in-situ monitoring with Vaya's fuel grain and tank manufacturing processes will enable full hybrid rocket engines to be produced in days, with the ability to adjust designs and tailor performance profiles to meet the demands of any mission profile. 'Additive manufacturing plays a central role in our ability to reduce design complexity, increase performance, and scale production,' said Aaron Blankenship, Vice President of Operations at Vaya Space. 'Velo3D offers the production readiness, material capabilities, and deep technical partnership we need to bring our vision to life and deliver flight-ready engines on schedule.' 'This partnership is a powerful example of how our Rapid Production Solution helps scale complex hardware manufacturing for today's most ambitious aerospace companies,' said Dr. Arun Jeldi, CEO of Velo3D. 'By combining our capabilities in GRCop42 and Inconel 718 with deep engineering collaboration, we're helping Vaya Space achieve faster, more cost-effective production—right here in the United States.' The agreement includes a joint marketing roadmap and formal signing event at Vaya Space's testing facility in Cocoa, Florida, where one of the propulsion systems produced with Velo3D parts will be on display. About Vaya Space Vaya Space is a privately owned company based on the Space Coast and leveraging patented Vortex-Hybrid engine technology to disrupt both the Space and Defense markets. About Velo3D Velo3D is a metal 3D printing technology company. 3D printing—also known as additive manufacturing (AM)—has a unique ability to improve the way high-value metal parts are built. However, legacy metal AM has been greatly limited in its capabilities since its invention almost 30 years ago. This has prevented the technology from being used to create the most valuable and impactful parts, restricting its use to specific niches where the limitations were acceptable. Velo3D has overcome these limitations so engineers can design and print the parts they want. The company's solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy, and semiconductor to innovate the future in their respective industries. Using Velo3D, these customers can now build mission-critical metal parts that were previously impossible to manufacture. The fully integrated solution includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control system—all of which are powered by Velo3D's Intelligent Fusion manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as SpaceX, Honeywell, Honda, Chromalloy, and Lam Research. Velo3D has been named as one of Fast Company's Most Innovative Companies for 2024. For more information, please visit or follow the company on LinkedIn or Twitter. Mary Baldino Vaya Space + 13214465905 email us here Visit us on social media: LinkedIn Instagram Facebook YouTube X Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.