The Northfield Public Schools are focused on providing stability in programming for students over the next few years. Approximately 70% of the District’s funding comes directly from the State of Minnesota. The District has no control over this major source of funding.
The State has not provided any additional per pupil funding for the last three years. The State will provide enough additional funding for the next two years to pay the interest on the money schools will need to borrow to cover the State’s additional funding shift as well as a funding increase for elementary literacy. Even with these small increases, the District has not seen an inflationary increase since 2003. Some important components to consider regarding state funding:
- By moving to a 60%/40% funding shift, the State will withhold 40% of what it owes schools until the following year, severely impacting our cash flow and compromising our school district’s ability to support students.
- This is the third funding shift since 2006-07 when the school district received 90% of its funding in the year it was due and only 10% in the following year.
- Cash balance is the money the school district has on hand to pay our bills. The 60%/40% shift by the state has reduced our cash balance by $2.4 million for this school year and $7.5 million since 2006-07.
- Currently in Minnesota, 90% of the school districts have operating levies in place.
- According to the Minnesota School Boards Association, there are currently 133 school districts (almost 40% of the districts in the state) going to their communities for a levy referendum this fall. This is the largest number of districts seeking levy authority in the past decade.
- The proceeds from the levy would be placed in our fund balance, increasing our cash balance, and would be used like a savings account in combination with other efforts to make up for shortfalls between State and Federal funding and District expenditures.
- By placing the levy proceeds in the fund balance, we would assure the greatest stability for programs and staffing even if the State formula continues to be frozen or fluctuates significantly as it has for the past decade.
The operating levy is designed to provide as much stability in our finances for as long as possible. The Northfield Public Schools wants our community to clearly understand the impact of the proposed operating levy. Click here to access the District’s levy calculator to determine how your personal property taxes might be effected by the operating levy. The State of Minnesota has programs that can help reduce the impact of the taxes associated with the operating levy, based on certain qualifications:
The second question — an extension of the current capital projects levy will not raise taxes. It simply extends the current levy 10 years past its expiration date of 2013.
If you have any questions regarding the District’s levy election, please see the other segments of this web site or contact Superintendent Chris Richardson at 507.663.0629.