2025 Operating Levy

No. $1550 is not your cost. When voters read the referendum ballot, it will show a “per pupil” (or per student) increase. The per-pupil amount is not the cost to property owners. 

State law requires the ballot to be written as a “per-pupil” amount; schools receive funding based on per-pupil formulas, including referendum funding. The question asks for $1550 per pupil. Multiplying $1550 (per pupil) by the number of children served will provide the school district with $6.6 million per year. 

Sometimes, voters see the per-pupil amount and confuse it with the tax impact or cost to taxpayers. The $6.6 million per year that the district is asking for is divided among all the properties in the school district, based on property value, so the tax impact on individual properties is much less than the per-pupil amount. For example, a home valued at $350,000 will pay an additional $25.25 per month in property taxes if the Question passes. We encourage property owners to check out our Tax Calculator or Tax Impact Chart below to determine your individual cost.

Tax Impact Chart

Ehlers Tax Calculator

Sample Ballot

If the referendum passes, it will generate $6.6 million annually and the funds can only be spent on: 

• supporting student learning
• maintaining high-quality teachers and staff 
• maintaining class sizes

• maintaining technology that keeps our schools safe, equitable, and compliant—powering essential systems for safety, learning, and state requirements

• building and maintaining innovative programming (like Nature Based Education, music at MMS, STEAM at all grade levels, and career pathways)

Over the next three years, the district would have to reduce expenses by $8 million. Budget reductions would result in larger class sizes, less individual attention for students, higher student fees (see video below), fewer teachers and staff, and reductions in critical supports for students who struggle. In addition to these things, we would also see reductions to technology access, cuts to administrative and dean positions, reductions at the District Office, the loss of 10 support staff, and the possible elimination of our Nature-Based Education program.

An operating levy referendum is a levy for learning. It helps fund day-to-day operations within our schools, which include teachers, classroom supplies, instructional assistants, and instructional materials. We need to keep our teachers to maintain adequate class sizes and provide students with the individualized attention they deserve.

The increased revenue will be used to maintain the high-quality education we have come to expect, maintain class sizes, avoid more budget cuts and bring financial stability for the district.

School funding in Minnesota is complex, and understanding it is key to supporting our schools and students. MASA, in partnership with Captivate Media + Consulting, created a short video to explain the funding process in a clear and engaging way. Take a few minutes to watch and learn how school funding impacts our communities. Click here to watch the video now.

Will more funding make a difference? YES. If the referendum is approved, we will be able to retain high-quality teachers and maintain small class sizes. Teachers will have more time to provide individual student support with fewer students in a class. We will also be able to maintain technology that keeps our schools safe, equitable, and compliant—powering essential systems for safety, learning, and state requirements, and maintain and build on our innovative programming (like Nature Based Education, music at MMS, STEAM at all grade levels, and career pathways)

Without this referendum, we will have to continue making budget cuts. That may mean more job cuts, fewer opportunities for kids, and increasing class sizes. Plus, it will mean losing excellent teachers to other school districts who have more stable funding. We want our teachers to stay in the community. 

School funding is set by the state and based on enrollment and state funding formulas, not property values. Schools do not get more money when property values increase or more homes are built.  When the total value of property increases in a school district, the set tax levy then gets divided among more property owners, so everyone’s share gets smaller. Therefore, it is a benefit to taxpayers, not the school district, to have new growth and development in the community. 

Schools are funded differently than cities and counties, and school funding is set by the legislature. Only a voter-approved referendum can increase the funding. 

Did you know that the school district portion (received by district) of taxes are less today (2025) than they were 20 years ago? Overall, property taxes have increased, but the school portion of your property taxes has not.

What about assessed values increasing with the hot housing market? If everyone’s property value increases by 10%, the education funding remains constrained by state laws and funding formulas based on enrollment. So, if everyone’s property increases equally, there is no change in the amount each person pays. 

In summary, there is a limit on the amount that school districts can collect in taxes, based on the number of students in the community. If property values increase, the district is limited to setting its tax levy based on enrollment and the total tax levy remains the same amount as if values had stayed the same.

We are. We have balanced our budget each of the last 13 years by cutting expenses. This fiscal year alone, we have cut $2.1 million, reduced our curriculum supplies and staff development budgets by 3.5%, eliminated 10 positions, and reorganized 94 roles on our payroll.

Our school district now ranks #283 out of 331 school districts in Minnesota in per-student funding.  We will have to cut another $2.1 million to balance the budget next year, if the referendum does not pass, and continue to do so into the foreseeable future. 

An operating levy is for learning; a bond referendum is for building. We’re asking for an operating levy — a legally separate funding stream that voters can approve to support classroom and educational programs, including day-to-day operating expenses. Operating levies pay for the things that really matter — quality staffing, quality curriculum and supplies, cleaning and safety. 

If the referendum question is approved, property taxes would increase by approximately $25.25 per month on a $350,000 home. The Tax Impact Chart and Ehlers Tax Calculator will allow you to view your specific tax impact. Not all property types are taxed the same. 

View the Tax Impact Chart Here

Ehlers Tax Calculator

There will be one question on the November 4 ballot. The question has a YES or NO vote. You will fill in the oval to cast your vote.

NOTE: The ballot states the amount in terms of revenue per pupil (per student) that the district will receive. That is not the cost to taxpayers. The cost to taxpayers depends on the value and type of property you own. For example, property taxes would increase by approximately $25.25 per month on a $350,000 home. Agricultural and recreational/seasonal property is not taxed for an operating referendum, and if the referendum is approved, taxes on agricultural land will decrease slightly. 

Sample Ballot Question (link)

Download the Tax Impact Chart

Ehlers tax calculator

The projected cuts for the next two years are a little over 8 million (2 million this current year and 6 million if the levy fails). So, the levy amount is the bare minimum to keep us going. The levy amount is less than the projected cuts. This was a number that we thought was appropriate for our community. This means that we will have to be very sharp, curbing our expenditures to make up the difference. 

Schools will still be physically safe. We will not endorse cutting anything that keeps kids safe. That means we will keep two SRO’s. We will have challenges in maintaining all of the behind the scenes safety items. Technology is not just Chromebooks, but it is all of the infrastructure for cyber security, firewalls, alarm/operational technology for maintenance systems (like HVAC). Our intercom system is currently in desperate need of major updates and without the levy, we would not know how to keep up with the expenditures of these rising costs. Everyone immediately goes to Chromebooks. Those are our cheap expenses and we haven’t had to spend too much money on them lately because of COVID money.

Answer from Superintendent Olson:

When I listed cuts, I listed the extra expenses we have added to the budget most recently. Three years ago, the curriculum director and I allowed spending that wasn’t planned for, in order to truly help the MMS become something special and different. The STEM programming across the district is something we are extremely proud of. When I have listed possible reductions, I have been simply communicating many of the last programs/expenses added. That doesn’t mean they will be the ones chosen, but it is easy for people to see and remember when these programs were added. 

When making budget reductions in a 60-million-dollar school district, there are so many pieces of the puzzle that it is impossible to fully explain exactly what would be reduced two years from now. However, I will briefly share the complexities. My simplest way to introduce a complicated process would be the following: we would have to look at the licenses of every teacher and look at the contract seniority of every strand of their license(s). Many educators have multiple licenses, so they would need to be listed in several strands. In summary, navigating reductions means that we would look at every staff member’s licenses and every staff member’s Seniority and match those two criteria to the needs to run a bare-bones school district. Even more simply put, it would be a complicated mess. 

During my 21 years in the district, we have always had non-tenured teachers in case reductions were needed, so it has been an easier process. Please know that while I say it easier, the spring budget time is my least favorite time of the year as both a principal and superintendent. It is really hard to tell a young kindergarten or first grade teacher that we have declining projected enrollment next year. Right now, we only have a couple non-tenured teachers between all three elementary schools. Because of the complications of license stranding and seniority, there is no way I can 100% say which programs would be reduced. I can tell you that it will be devastating if the levy fails.

The first answer is absolutely yes, there will be reductions in all employment areas. With that said, our audits show we are considerably low in our administration costs. We have been advised to add more administrators for several years. With that said, reductions would have to be a balance in all employee groups. Two weeks ago, we had our Director of Buildings and Grounds leave for other employment. Our Director of Business Services and Superintendent have split up the duties. We are pausing adding back the position until we know where we stand financially. Currently, we plan on working with our awesome head custodians and two district office staff (named by position above) to reduce the administrator cost for the rest of this year (as a savings starting point).

No! This is not a building or bond referendum. It’s an operating levy focused on learning — providing essential, back-to-basics funding to maintain high-quality education for our students.

We try to be as transparent as possible with all aspects of our organization, especially finances. If you have a finance question please email the Director of Business Services, Tina Burkholder, at tina.burkholder@monticello.k12.mn.us to set up an appointment. We are more than happy to answer any questions, explain any decisions, and review any financial records of interest.

Director of Business Services, Tina Burkholder also completes the following year-round:

• Presentations to the school board
• Professional audits
• State accountability
• Monthly staff updates
• Website updates for the community

The Minnesota Department of Education sets formulas and guidelines for school district revenue. The only portions of revenue for which there is local control are local operating referendum funds and local fees. As a general rule, school districts can’t use funds from other designated areas (like Food Service or LTFM) to fund day-to-day school expenses.

In Minnesota, school funding is a shared responsibility among local, state and federal funding sources. Here are two videos that you can watch to learn more about school funding:

School Funding in Minnesota

How are Minnesota Schools Funded?

The largest portion of a school district’s budget is the Operating Budget, which is funded by the state’s General Education Fund Formula. The Operating Fund provides teachers, classroom supplies, co-curricular, and utilities—all the day-to-day operations of a school. When we discuss budget reductions, the district is focusing on the operating budget.

The district has other funds (or buckets) that are strictly regulated or restricted. For example, there is the Food Service Fund, which is largely funded by the Federal Student Nutrition Program and families who pay for lunches. This fund must be self-sustaining and break even every year. Student nutrition staff, custodial services and some lunch-time supervisory staff are paid through the Food Service Fund.

Long-Term Facilities Maintenance Funds (LTFM), or building funds, are another fund that is tightly regulated, and those funds can typically only be used for buildings.

Community Education is outside the District’s general operating budget. Like the Food Services fund, it must be self-sustaining and receives a small local levy and fees from programs and services.

Learn more: Legislator’s Guide to School Finance (PDF)