Finance Facts

Our voter-approved operating levy is in the bottom third of the Big 9 schools - and lower than Faribault and Northfield. These levies are one way local communities support their schools and help pay for school operating costs.

The operating levy approved in 2013 will expire next year, unless it’s renewed in November 2020 by our voters. If our operating levy is not renewed in November 2020:

• We will lose $2.5 million per year, requiring cuts to programs and services
• These cuts would be on top of $500,000 already cut in 2019-20 and $2 million in cuts planned for 2020-21

We do our best to stretch every dollar. We strive to be as efficient as possible while maintaining a quality education for our students - but this is becoming increasingly difficult. We work hard to keep a reasonable fund balance for financial stability, cash flow and unanticipated expenses. The fund balance varies over time as we try to adapt to the state and federal funding gaps.  For the first time in several years, we are projected to fall below the Board’s fund balance goal.

Our long-range outlook shows expenses outpacing revenue, which means only renewing the levy will not be enough to maintain the educational programs our students deserve and our community expects.

When expenses outpace revenue, there are three options: cut expenses, increase revenue through an operating levy, or both. By law, local voters have the opportunity to provide additional funding for their schools to pay for classroom materials, staff costs and other operating expenses.

The School Board and district leadership are considering how best to share the burden of these financial challenges.

• Belt tightening on the district side … and a request to voters to increase our operating levy on the community side
• One option: a phased-in operating levy - only asking for what we need, when we need it. Because the levy would be phased-in, the tax impact would be phased-in as well. This offers a conservative approach that is more respectful and financially responsible.

The School Board will discuss the Superintendent’s recommendation at their June 22 meeting, with a final decision expected at the July 13 meeting.  

Our community has trusted us by approving an operating levy to help fund school programs and services, and bonds to build, improve and maintain our schools - and we’ve kept our promises!

• Balanced budgets every year 
• Maintained a reasonable fund balance for cash flow and unanticipated expenses
• Saving taxpayers money with lower than anticipated interest rates on 2019 bond

We are also proud that our district has consistently been recognized for its financial management by receiving:

• The Association of Business Officials International Certificate of Excellence in Financial Reporting for 26 consecutive years
• The Minnesota Department of Education’s School Finance Award for fiscal health and timely and accurate submission of financial data and reporting criteria for eight consecutive years

We are so grateful to our community for their past support. It’s important to know that budgets for buildings are legally separated from budgets for operations. Bonds can’t be spent on programs - and operating levy dollars are used to support classroom learning and related expenses. 

Questions? Email info@isd761.org. Updates will also be provided in the OPS eNews - subscribe here.