Levy Referendum Information

Good questions are raised regarding the Operating Levy Referendum that is on the ballot at the November 8 election and I will provide answers to some of these questions as they arise.

What is an operating levy?  This is a voter approved levy that provides funding beyond what the state aid formula provides. This funding is generated through property taxes and goes to support the General Fund. The General Fund provides for the day to day operations of the school district. The operating levy does not support capital expenditures such as building construction or the purchase of equipment or textbooks. The Food Service Fund, Community Service (education) Fund, and Debt Service Funds are separate funds not associated with the General Fund or the operating levy. The current voter approved operating levy of $426 per pupil was passed in 2002.
         
Over 90% of the school districts in the state are reliant on operating levies for the day to day    
operation of their school districts. Our cost per student is lower than any of our surrounding school   
districts and well below the state average. Without the operating levy we would need to reduce spending considerably, which would have direct impacts on class sizes, course offerings, pupil transportation, student activities and General Fund supported programs and personnel.

Why do we need it?
The district budgeted for a $785,000 deficit this year, which will be financed by reserves that can be used for this purpose. The first round of federal stimulus ended June 30. State aid was frozen the past two years. Enrollment increases are projected to be minimal and expenditures are projected at 1.32% during the next several years.

Added to this is the state's shifting of 40% of state aid into the next school year, causing the district to cash flow the shortfall. One goal of the school board is to maintain a fund balance sufficient to avoid interest expense associated with cash flow borrowing. The new operating levy will provide that.