Levy Q&A Why is District 196 bringing a levy question to voters? The district is facing a projected $30 million budget shortfall over the next two school years, despite making $34 million in budget adjustments over the last four years. The shortfall is due to rising costs and a decade of receiving less‐than‐inflationary funding increases from the state. Without additional revenue from an increased operating levy, the district will need to make $10 million in budget adjustments for 2014‐15 and a projected $20 million more for 2015‐16. Where do I go to find out where I vote? On the Minnesota Secretary of State website at www.mnvotes.org, you can find out if you are registered to vote, where you vote in the next election and how to vote by absentee ballot. If the state gave schools new money last session, why is the district asking for a levy increase? The state did invest new dollars toward education in the 2013 session, but it did not eliminate the $30 million shortfall in the district’s budget. Almost one‐third of the additional state funding for education will support new spending to add full‐day kindergarten beginning in fall 2014. Increases to general education funding, the largest single source of state aid to support school district operations, are 1.5 percent this year and next year, less than the rate of inflation, as they have been for the past decade. What did the district do to prevent the current budget shortfall? From 2009 to 2012, the district made budget adjustments totaling $34 million, including the elimination of nearly 200 positions, increased class sizes, reduced transportation service and increased cocurricular fees. In addition, the School Board froze employee salary schedules in two of the last three years in order to save money and help balance the budget. As a result of the cuts and salary schedule freezes, the district’s total employee costs have actually decreased in each of the last two years. Why didn’t the $34 million in budget adjustments fix the problem? The $34 million in budget adjustments did balance the district’s budget during the three years of cuts from 2009 to 2012. Freezing employee salary schedules for two years also provided savings that helped the district avoid additional cuts last year and this year, but not beyond this year. What will be cut if the levy is not approved? A total of $10 million, including increased class sizes at all grades; cuts to Gifted and Talented, Basic Skills and other student‐support staffing, and the elimination of 5th grade band, the Developmental Psychology program at the high schools and all 9th grade B‐team sports. There would also be a 20 percent increase in fees to participate in high school sports. In addition, the district would initiate a community‐wide process to identify $20 million more in cuts that are projected to be needed for 2015‐
16, without additional levy funds. What will happen if the levy is approved? The district will avoid the cuts identified for 2014‐15; maintain its Triple A philosophy of offering a variety of opportunities for students in academics, the arts and athletics, and continue to expand growing programs in early learning, STEM education and college‐credit courses for high school students. What is the tax impact of the levy question? If the levy is approved, total school district taxes would increase by $56 from this year to next year for the owner of the average‐value home in the district, which is currently $225,000. What would be the tax impact of the levy for renters in District 196? There would be no direct tax impact on residents who rent and do not own property in the district. Indirectly, property owners may adjust rent to factor in the cost. How much is the district’s current levy and when does it expire? District 196 currently receives $1,111 per pupil from a 10‐year operating levy that was approved by voters in 2005. If it is not renewed or revoked earlier by district voters, this levy would expire after the 2015‐16 school year. How does District 196’s current levy compare to other districts in the conference? At $1,111 per pupil, District 196 receives $237 per pupil less than the current average of $1,348 per pupil for the five school districts that comprise the South Suburban Conference. The others are Bloomington, at $1,876 per pupil, Burnsville at $1,696 per pupil, Prior Lake at $1,094 per pupil and Lakeville at $961 per pupil. What is the maximum amount the district could ask for in an operating levy referendum? The current state cap for voter‐approved operating levies is $1,845 per pupil. The district’s levy question asks for an increase of $375 per pupil, which would bring the district’s total levy to $1,486 per pupil, $359 per pupil under the current state cap. Are other school districts also asking for operating levies this year? Yes, 16 of the 48 metro‐area school districts are having an operating levy referendum vote on November 5, including neighboring Lakeville. Ninety percent of Minnesota school districts have a levy referendum to pay for basic operations and the average amount generated by operating levies has tripled in the last 10 years. When was the last levy vote in District 196? In November 2010, the district put a levy question on the ballot that would have increased the operating levy to the maximum amount allowed by state law that year. The question, which was not approved, would have generated an additional $16 million per year for the district. The current levy question seeks an increase of $375 per pupil, which would generate an additional $10 million per year for 10 years. What has the school district done to save money? Debt refinancing and energy use reduction are two good examples. In the last two years, the School Board has saved district taxpayers $7 million in future debt payments by refinancing existing debt at lower interest rates. A district‐wide effort to reduce energy use has resulted in savings of more than $3 million since 2007. Is the school district considering closing a school to save money? No. An enrollment study conducted earlier this year concluded that total enrollment will begin to increase again slightly after several years of very slow decline. The start of voluntary all‐day kindergarten next year will create a shortage of available classroom space in the district’s elementary schools. How much could be saved by eliminating all sports and plays? Annual spending on cocurricular activities such as sports, instrumental and choral music, and performing arts activities is $6 million, which represents just 2 percent of the district’s total expenditure budget. District 196 is known for its Triple A philosophy of offering a variety of opportunities in academics, the arts and athletics to promote the development of well‐rounded young people. Why is the district building a new learning center in Apple Valley? For many years, the district leased space at two facilities for its early childhood and Adult Basic Education programs, one in Apple Valley and the other in Eagan. The leases on these buildings expire next summer. After researching existing space in the community, it was determined the most cost‐
efficient option was to construct and own a facility on district‐owned property, instead of continuing to pay for leased space at two facilities. The district will use lease‐levy dollars for construction of the new building, which will be paid off in 20 or fewer years. If this levy is approved, how long before the district could ask for more local funding? The district has identified the need for additional classroom space at some elementary schools in order to accommodate the addition of all‐day kindergarten long term. The district also receives a little over $1 million per year from a 10‐year capital projects levy that was approved by voters in June 2004 and will expire after the 2014‐15 school year, unless renewed or revoked earlier. The district could bring a vote on one or both of those items within the next two years. Is there anything else on the ballot on November 5? Yes. In addition to the referendum, voters will also fill three seats on the District 196 School Board. Four candidates are seeking election to the four‐year term seats, including all three incumbents and one challenger. The incumbents are Art Coulson of Apple Valley, Gary Huusko of Eagan and Mike Roseen of Apple Valley, and the challenger is Craig Angrimson of Apple Valley. Do you have other questions? Call the Levy Line at 651‐423‐7776.