Mounds View Public Schools

Levy expiring

What about the
2003 Levy?

A successful levy in 2003 has kept class sizes from reaching all-time highs. It also helped maintain programs and reduce activity fees as promised. Yet as enrollment declines, so has the revenue produced by the 2003 levy. Each year, the 2003 levy total loses $300,000. As a result, funding shortfalls are projected, despite the revenue.

An operating levy approved by voters in 1986 is set to expire in 2008-09, leaving the District with a loss of $3.4 million a year.

Budget shortfalls
Mounds View’s enrollment decline over the past five years is the largest decline experienced in any of the 50 metropolitan districts. As enrollment continues to decline, expenses continue to rise. Simply renewing the levy won't prevent years of projected budget shortfalls. Excluding the reductions made for declining enrollment, a renewed levy would still require reductions of $4.3 million in 2007-08 and $5.8 million in 2008-09.

Legislature provided options
During the 2005 Legislative Session, the State increased the amount of revenue districts can receive through operating levies. This allows Mounds View to ask voters to approve a total of about $900 per pupil in 2007-08, with about $30 annual increases every subsequent year.

Despite this new authority, a successful levy will only prevent shortfalls for one year. Excluding reductions made for declining enrollment, a successful levy would require reductions of $1.5 million as soon as 2008-09. However, a successful levy minimizes the range and scope of reductions required in the near future.

For more information

What about the State's
4% increase?

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.

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