Mounds View Public Schools

Frequently asked questions on the levy

1. Didn't we just pass a levy?

If enrollment is declining,
shouldn't expenses decline?

Let’s say the District loses 25 students in the same class and in the same school. It loses about $150,000 in per-pupil revenue. Cutting that class’ teacher saves about $50,000. So, there’s another $100,000 in cuts that still must be made. At the same time, the school’s fixed expenses like utilities, custodial support and insurance all remain.
Yes. In 2003, voters approved an operating levy that declines by about $300,000 each year, as a result of declining enrollment. Without it, class sizes, activity fees and transportation fees would be much higher. It also has helped maintain several programs and student support services. This fall’s levy is to replace a levy approved in 1986 that’s about to expire in 2008. Without it, the District will lose more than $3 million a year. Read more here.

2. What about the 4% increase from the Legislature?
The 2005 Legislative Session produced a 4% increase on only one portion of Mounds View’s funding budget. In actual dollars, it translated to $2.1 million in revenue. But the revenue loss experienced due to declining enrollment equaled $1.5 million. So, the overall impact of the 4% increase was a realized gain of $600,000 in 2005-06.

3. Isn’t employee compensation overly generous?
Salaries and benefits paid to employees are very much in line with other public and civilian employees:

* Last year, teacher salaries in Mounds View ranked 32nd out of the 50 metro districts. Employee benefits ranked 29th.

* % of total employee compensation spent on benefits:
Mounds View 22%
All Minnesota schools 23%
State/local governments 24%
Civilian workers 20%

*When it comes to providing retiree benefits, only 26% of District employees are eligible to receive post employment benefits.

4. Aren’t the schools getting more in property taxes today than before?
No. Property taxes paid towards Mounds View Public Schools are lower today than five years ago. Read more here.

5. Why is enrollment declining?
The number of school-aged children who live in the District is shrinking. Mounds View continues to attract and enroll 80% of all possible students, and non-resident enrollment is continuing to grow. Read more here.

6. If the levy passes, why are more cuts expected in the future?
Levies only fund 10% of the District's budget. So solving the District’s financial puzzle requires many pieces, including continued downsizing, legislative support and balancing financial constraints with providing competitive employee compensation.

7. Why is our district the one asking for levy support?
Mounds View is among many Minnesota districts pursuing levy referendums this fall. In fact, more than 88% of districts rely on operating levies to fund basic, core academic programs.

8. Why is school funding increasingly the responsibility of property taxpayers?
In 2001, the Legislature assumed greater responsibility for funding education. Yet state aid has lost pace to inflation, and recently the Legislature has given school boards more authority to ask for levy support. This signals an intentional move to make property taxes an increasingly important funding mechanism for public education by shifting many funding responsibilities away from the state and onto taxpayers through levy referendums that fund core programs.

9. How much money is really enough?
Each year, the School Board sets priorities that if acted upon by the Legislature would produce enough money to meet the District’s needs. Last year, the priorities totaled $8 million, yet legislative actions did not produce close to this amount of funding.
Examples of priorities include:
*Fully fund the state special education formula.
*Provide districts with more options and flexibility to control employee health care costs.
*Provide funding to address increased energy costs.
*Amend the per-pupil funding formula to consider Districts with declining enrollment.
Read more here.

10. Even if the levy passes, could more schools close?
Yes. As enrollment continues to decline and space becomes available, more school closings are possible. Current enrollment and capacities don’t allow for a school closing to happen until 2008-09.

For more information:
Levy and bond history timelines

A 10-minute guide to understanding your property taxes and schools

How levies work

History of voter-approved operating levies

Enrollment update

Budget shortfalls projected with levy renewal only

No additional reductions (beyond declining enrollment) made for one year with successful levy exercising new authority

Review of 2005 Legislative Session

To submit your own question, e-mail levy06@moundsviewschools.org.

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