Do Schools Need Operating Levies?

Claims are being made that the legislature has provided sufficient funding to schools so that schools don’t need operating levies.

The state increased per pupil funding by what amounts to $60 per student each year in the biennium. In FY13 they put in a $52 per student literacy incentive that is calculated based on the number of students proficient in reading in the 3rd grade times the number of students in the building (estimated to come out to about $38,000 total for Delano).

Last spring our financial planning models that were developed by PMA Financial Network, Inc., the district’s investment advisors, did not account for this as the model was developed prior to the adjournment of the legislature. The increase amounts to about $137,000 each year plus about $38,000 more for the literacy incentive in the second year. This increase won’t have much of an impact on our situation as related to the levy. The $785,000 deficit that we have this year, which will be funded by reserves in order to maintain current level of programming, could be reduced by these dollars. The overall effect of the increase is that it extends by a few days how long the levy will last with costs of operation at $366,678 per week.

It’s interesting to note that legislators are talking about how these increases should deter schools from needing to pass levies when $50 of the $60 per student was passed with the intention to help schools pay interest charges for cash flow borrowing brought on by the legislature shifting 40% of what they owe schools this year into the next year to help the state balance the budget.

Click here to see a response from the Commissioner of Education, Brenda Cassellius that appeared in TwinCities.com Pioneer Press.