Officials at Minneapolis Public Schools (MPS) are facing financial questions regarding a recent “accounting maneuver” that yielded $10.8 million in “surprise revenue,” according to reports.
Despite holding a press conference, which the Minnesota Reformer described as a rare occurrence, the district’s administration answered only four questions and remained tight-lipped on others.
“Unanswered: Why the district went years without making a similar accounting adjustment, thus potentially costing tens of millions of dollars over the years, or how the district’s finance department became so chaotic and dysfunctional in recent years,” Melissa Whitler wrote.
MPS has already come under scrutiny for a series of financially questionable actions, including a failure to report withholding almost $3 million from an employee health care account.
“District officials have not explained why former senior finance officer, Ibrahim Diop, remained employed until January, when he resigned, despite two district investigations into his department, two letters of reprimand and a performance improvement plan,” Whitler observed.
“Nor has the district addressed in any detail how it came to be assessed over $5.3 million in tax penalties over the past four years, with the most recent just last month.”
The additional $10.8 million in state funding will help support adult education, insurance costs and academic programs, according to the article.
“The revenue increase comes from an adjustment to how the district spends its federal special education funding. By changing which expenses are paid for by federal funds and which are paid for by state funds, the district will be able to increase its state special education allotment.”
‘Not able to comment on or respond to questions’
Through a public records request, the Reformer was able to obtain “a highly-redacted investigative report” by the Greene Espel law firm containing the recent financial disclosures.
However, the district has avoided providing specific details relating to Diop, whose tenure ended in January.
“In April 2025, Diop, the former senior finance official, announced a team to look into obtaining more special education funding,” Whitler wrote. “The announcement came after an audit of the district’s special education services by the Council of Great City Schools.”
Donnie Belcher, a district spokeswoman, told journalists she was “not able to comment on or respond to questions about specific employees or other non-public information.”
As previously reported by The Lion, growing budget deficits from several districts nationwide – including MPS – have raised concerns over their fiscal monitoring and oversight.
