Frequently Asked Questions

On November 7, 2023, voters in ISD 318 will consider three ballot questions – two operating levies and a capital projects levy. The three ballot questions will be presented separately to voters. Question One determines the fate of the other questions. If Question One does not pass, then Question Two and Question Three automatically fail, no matter their vote totals. Question Two can only pass if Question One passes. Question Three can only pass if Question One and Two also pass.

If all ballot questions are approved by voters, the revenue from these levies would allow the district to stabilize its finances, restore programming and advance excellence. For more information see The Plan page.

Over the past decade, we have faced significant financial challenges as state funding has not kept pace with the rising costs of education. We have been in deficit spending for nearly eight years, and over the last four years have cut our budget by $7.4 million. We have managed our budget as efficiently as possible without seeking additional funding from our residents. After years of temporary fixes and budget cuts, we need a new solution.

Over 70% of school districts in Minnesota rely on voter-approved operating levies to support their general operations, including educational programming, classroom supplies and staff compensation. ISD 318 does not have a voter-approved operating levy - meaning we spend hundreds of dollars less per student than similar school districts. If approved, additional funding would help stabilize our finances, avoid deeper budget cuts, retain and attract teachers, restore programming, maintain small class sizes, update curriculum and invest in technology, transportation and safety and security.

This November, we are proposing three ballot questions that, if approved, would allow the district to utilize two types of levies to address chronic underfunding. Each type of levy would generate revenue for a distinct purpose.

An operating levy funds the general operations of a school district, such as classroom education, supplies and staff wages. The proposed $1100 per pupil operating levy would be used to maintain operations and avoid deeper budget cuts. The $300 per pupil operating levy would upgrade curriculum and programming, including career and technical education, to advance excellence.

A capital projects levy funds infrastructure, technology and transportation projects. The district has identified $2.5 million in ongoing capital project needs, including upgraded technology, new school buses, and sustainable funding for safety and security investments. A capital projects levy would alleviate pressure on the district’s general fund, making it possible to restore educational programming lost due to budget cuts and invest in staff recruitment and retention.

Two types of levies would also spread the cost across a broad range of properties in the district. An operating levy is primarily paid for by residential homeowners. However, a capital projects levy shares the tax burden among a wider variety of property types, including non-homesteaded agricultural land and seasonal recreation property.

Over the past four years, our district has reduced our budget by 13% or $7.4 million to address budget shortfalls. These cuts have impacted every aspect of education and our community. We cut more than 70 staff and administrative positions, reduced elective courses in our high schools, delayed investments in career and technical education, eliminated German and middle school Spanish, eliminated the K-5 arts program, reduced technology expenditures, delayed bus purchases, raised activity fees and started charging the community for the use of school facilities. We have also worked with our staff to reduce costs related to their health insurance plans. For more information, see Our Challenges page.

With increased funding from voter-approved levies, the district would stabilize its finances and avoid deeper cut budgets, restore programs, attract and retain staff, and advance excellence. The district’s plan aims to use additional funding from voter-approved levies to make targeted class size reductions, increase access to electives and class options, increase access to academic, behavioral and mental health support, increase opportunities for college and career readiness and invest in our staff. More information, including a video from Superintendent Matt Grose explaining what happens if the referendum passes or fails, is available on our Plan page.

If voters reject the operating and capital projects levy, the district will face a budget deficit by the 2024-2025 school year. Without additional funding, we will need to make further budget cuts or operational changes before the start of the school year. Budget decisions for that school year will not occur until next spring, but the district and our school board believe our community needs to know the choices we face.

Additional budget cuts may impact:

• The number of school buildings we can operate.

• Staffing levels—resulting in reductions.

• Class sizes.

• School week structure—shifting to a 4-day school week.

• East and West Elementary schools—changing them from both being PK-5 to one being grades PK-2 and the other being grades 3-5.

• Core and elective class offerings.

• Access to student academic, mental health and behavioral support.

• Student activities in grades 6-12.

• Investments in curriculum, buses and technology.

More information, including a video from Superintendent Matt Gross explaining what happens if the referendum passes or fails, is available on our Plan page.

If all three ballot questions pass, a home valued at $200,000 would see an estimated property tax increase of $30.75 per month starting in 2024, or about $19 for Question One, $6 for Question Two and $5 for Question Three.

If all three ballot questions pass, a home valued at $300,000 would see an estimated increase of $46.75 per month, or about $29 for Question One, $10 for Question Two and $8 for Question Three.

To see the tax impact of the proposed levies on your property, visit The Cost page.

An operating levy is a local property tax approved by voters that helps fund the general operations of a school district, including staff compensation, educational programming, classroom supplies and utilities. Homeowners, apartment owners and businesses primarily pay operating levies, which are based on their property's assessed market value. Land used for agriculture and cabin properties are exempt from an operating levy.

Over 70% of school districts in Minnesota rely on voter-approved operating levies to support their general fund budget. ISD 318 does not have a voter-approved levy for its operating fund. As a result, our district spends hundreds of dollars less per student than similar school districts.

There are two proposed operating levies on the ballot. Funding from Question One (a $1,100 per pupil operating levy) would allow the district to stabilize its finances and avoid deeper budget cuts. Funding from Question Three (a $300 per pupil operating levy) would maintain small class sizes, enhance career and technical education, and update curriculum and programming.

For more information, see The Plan page.

A capital projects levy is a local property tax approved by voters that funds infrastructure, technology and transportation projects. A capital projects levy, by state law, applies to a wider range of property types, including non-homesteaded agricultural land and seasonal recreational properties – which lowers the tax burden on residential homeowners.

More than 50 Minnesota school districts use capital projects levies for technology, transportation and other infrastructure needs. ISD 318 does not have a capital projects levy. This means the district uses its operating budget to finance these needs, which pulls funding away from student education and staff compensation.

If approved by voters, the capital projects levy ($2.5 million annually) would allow the district to invest in technology, transportation and safety and security and move those costs out of its general fund. This would allow the district to restore classes and programming that our students lost due to budget cuts and attract and retain quality staff.

For more information, see The Plan page.

Not necessarily. Unlike sales or income taxes, property taxes do not increase just because your property value rises. The property tax you pay is determined by the value of your property in relation to the total value of the property being taxed within the district. Your taxes would increase only if the typical property value increases less than your property does from one year to another. Historically, property improvements have been a major cause of tax increases, as an addition or a new garage leads to a higher assessment (and a home of higher value).

Based on the state’s funding system, ISD 318 did not fare as well in the recent education funding bill as other districts in this area. While the 2023 education bill provided more resources for one year, it also added expensive mandates that will use up much of the extra funding. A one-year funding increase from the state that is larger than average does not make up for more than 15 years of underfunding. The funding provided by the state does not meet the educational needs of our students and will not alleviate our budget challenges.

Visit Our Challenges page for more information on our district’s needs and challenges.

Election Day is Tuesday, November 7, 2023. Polls will be open between 7 a.m. and 8 p.m. Early voting begins on Friday, September 22, 2023. You can find detailed information on the Vote page.

The Minnesota Legislature approved a new law in 2023 that allows a school board to renew a voter-approved levy one time without seeking voter approval. Under current law, the school board will only be allowed to renew the levy at the same amount for an additional seven years. The school board could also choose to ask voters to renew the levy. This school board renewal authority only applies to question one and question three for the November 2023 referendum.

We encourage you to share your questions and comments by visiting our Connect page. You may also contact Superintendent Matt Grose at mgrose@isd318.org or 218-327-5704.