Mankato Area Public Schools could face millions of dollars in spending cuts for the next school year. However, the projected state budget surplus could impact those decisions.

The district says the primary reason for the deficit is a decline in enrollment as a result of the COVID-19 pandemic.

At the latest school board meeting, the district said revenue is down $5.3 million this year. Assuming there’s there is no increase in funding, another $1.6 would be lost.

Superintendent Paul Peterson warned that staffing cuts were likely unavoidable since more than 80 percent of the budget is for payroll.  But the state’s budget surplus could also mean more state funding.

Final recommendations will be made at the April 5 meeting, but the budget does not have to be approved until June.