This report describes financial and staffing trends in Minnesota's public-school districts. The report arose from legislators' concerns about budget problems that caused many school officials to eliminate academic programs and trim other expenses. The following questions are addressed in the evaluation: How has public school enrollment changed over the last decade? How have district fund balances varied over the last decade? How have staffing levels and salaries changed over time? How have past trends varied depending on the size, location, and other characteristics of school districts? and Why are some districts experiencing financial problems? The findings of the study reveal that the financial condition of school districts improved during the 1990s. Spending on special education increased as did inflation-adjusted general fund revenues per student. Although over one-third of the districts made budget cuts in 2000, the statewide teacher-student ratio was expected to hold at or near the high reached in the prior year. Although spending increases resulted from class-size reduction efforts, declining enrollment, low staff turnover, growing transportation costs, and inadequate management practices, no single factor explained why some districts experienced declining fund balances or had to cut spending. Two appendices list the districts surveyed and those districts in statutory operating debt. (RJM)