The decision to request support from district voters was based on a thorough review of district long-term financial projections and extended planning discussions about inadequate state funding and unfunded mandates putting pressure on an already stretched budget:

• State funding is not keeping pace with inflation or increasing educational costs. If state funding had kept pace with inflation since 2003, Owatonna Public Schools would have received an additional $3 million last school year alone.

• Required academic and support programs cost the district nearly $7 million more than it receives each year from the state and federal governments.

• If the operating levy is not renewed in November 2020, the district will lose $2.5 million per year, requiring cuts to programs and services.

• Owatonna's 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.

Operating levies are locally approved funds that help support school district operating costs. The majority of Minnesota school districts have a voter-approved operating levy, because education funding is a shared partnership between the state and federal government and local communities. Operating levies help pay for things like staff, curriculum, classroom supplies, utilities and bus transportation - costs that are critical to operating our schools and our district.

In November 2019, our community approved bond funds to build a new high school and repurpose the existing high school. By state law, bonds can ONLY be used for buildings - repairing, updating and building them. Schools also need funding to operate their schools. The majority of Minnesota school districts have locally approved operating levies that provide additional funds for these operating costs - things like staff, instructional materials, classroom supplies, utilities and bus transportation. The school funding requests on the November 3, 2020 ballot are for operating levies. In short, bonds are for buildings and levies are for learning.

District leaders and the School Board are very conscious of the challenging economic times many are facing due to COVID-19. To balance the district’s financial needs with the community’s ability to offer support, the Board’s unanimous decision was for a “shared approach” that combines $5.25 million in budget cuts over the next three years on the district side with an operating levy increase request on the community side.

Question one, which would renew the existing operating levy, would increase taxes for the average homeowner ($175,000 value home) about 50 cents per month to cover an annual inflationary adjustment. Question two would not increase taxes in 2021, because the levy increase would be phased in beginning in 2022. The tax increase in 2022 would be approximately $10 per month for the average homeowner. View more information on the tax impact here.

We want to be transparent about our financial needs. Q1 asks voters to renew funding previously approved seven years ago. Q2 is in response to financial pressures that have been building and can’t be solved with the current level of funding. We want the community to see what each question would provide on its own merits.

It means that question 2 (levy increase) can only pass if question 1 (renew levy) is first approved by voters. In other words, if a voter wants the district to get the levy increase, they need to vote yes on both questions. The only way the district will receive the levy increase is if both Q1 and Q2 get more than 50% yes votes. If question 2 gets more than 50% yes votes but question 1 does not, neither question will pass.  If a voter doesn’t want either request to pass, they should vote no on both. If a voter only wants to support the renewal, but not the increase, they should vote yes on Q1 and no on Q2.

The breakdown of budget cuts was as follows:

District support services cuts included elimination of the District’s Communications position; cuts to Business Office, clerical, custodial and technology staff; and cuts to district and school support positions. Regular/special education cuts included elementary, middle school and high school teachers; special education support positions; and teacher supports.