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K-W Public Schools Revoke & Replace Operating Levy November 5, 2019

K-W Public Schools Revoke & Replace Operating Levy November 5, 2019. Operating Levy Ballot – Revoke & Replace K-W = Know - (Who, What, Where, When, & Why) Know = Referenda: Bonds are for building, levies are for learning. Who = People: Operating costs are over 70% staff compensation.

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K-W Public Schools Revoke & Replace Operating Levy November 5, 2019

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  1. K-W Public Schools Revoke & Replace Operating Levy November 5, 2019

  2. Operating Levy Ballot – Revoke & Replace K-W = Know - (Who, What, Where, When, & Why) Know = Referenda: Bonds are for building, levies are for learning. Who = People: Operating costs are over 70% staff compensation. What = Revoke and replace the current levy passed in 2013 with a new 5-year operating levy. When = November 5 (absentee ballots available now). Where= Wanamingo Community Center or Kenyon City Hall. Why = It is the best value & corrects the shortcomings caused by legislative changes in 2014 & 2019.

  3. What is an Operating Referendum?

  4. Authorized by voters as a specific dollar amount per pupil • Can be a fixed amount or subject to annual inflationary adjustments • Term must be no more than 10 years What is an Operating Referendum?

  5. Revenue capped at $1,779.50 per adjusted pupil unit for fiscal year 2020-21 • Cap adjusted annually for inflation • No cap for districts which qualify for sparsity revenue • Some districts have a higher “grandfathered” limit • Kenyon-Wanamingo’s authority is $295.68 per pupil Current Referendum Provisions

  6. Operating referendum property tax levies spread on Referendum Market Value (RMV) • Referendum property taxes are not levied on • Seasonal recreational property (cabins) • Agricultural land and buildings (only levied on house, garage and 1 acre) • Almost all other property pays same tax per dollar of market value • Operating referendum revenue amounts can qualify for state equalization aid • State aid portion of referendum revenue dependent on district’s RMV per resident pupil

  7. Current Referendum Provisions

  8. All districts qualify for up to $724 per pupil unit of Local Optional Revenue (LOR) • Approved by School Board as part of annual levy process (no separate resolution or voter approval required) • Two tiers of equalization • Kenyon-Wanamingo School District receives approximately 45% aid in Tier 1 and 6% aid in Tier 2 • For referendum authorities approved before 2014, $424 LOR allowance is subtracted from voter approved referendum authority • $300 per pupil of referendum authority will convert to LOR increasing the total LOR to $724 Other Legislative Changes Impacting Allowances

  9. Referendum Authority Conversion – ISD #2172 Fiscal Year 2020-21 allowance: $295.68 • How did we get this? • Voter-approved amount 2011 & 2013: $1019.68 • District LOR (2019 Legislative change): $724 • Total FY 21 allowance: $1,019.68 - $724 = $295.68

  10. Growing Reliance on Referendums

  11. Growing Reliance on Referendums

  12. Number of districts relying on operating referendum revenue has increased • In 1993, only 65% of districts had referendum authority • For Fiscal Year 2019-20, 100% of districts receive referendum revenue • 11 districts currently do not accept any local optional revenue • 5 districts accept a portion of local optional revenue, averaging approximately $415 per pupil Referendum Trends

  13. Referendum Trends

  14. Average referendum authority per pupil has increased • In 1993, average referendum authority was $332 per pupil • For Fiscal Year 2018-19, average referendum plus local optional revenue authority is $1,297 per pupil • Equal to 20% of general education formula allowance • Of this amount, $910is board approved or voter approved operating referendum, and $387 is Local Optional Revenue Referendum Trends

  15. Other funding sources (e.g., special education) also have not kept pace with inflation Only options for districts to bridge the funding gap are to cut budgets or increase referendum revenue; most districts have done both

  16. Election Date: Tuesday, November 5, 2019 • Existing authority is $295.68 per pupil • Expires after FY 2021-22 • The Ask • Question 1: Revoke current authority and replace with $460 per pupil • Question 2: Additional authority of $300 per pupil • Subject to annual inflationary adjustments (determined by State) • Expiration after 5 years (can go up to 10 years) District Specific Information

  17. Tax Impact

  18. State of Minnesota has two tax refund programs and one tax deferral program available for owners of homestead property • Programs may reduce net tax burden for local taxpayers, when property owners complete and submit forms • For help with forms and instructions • Consult your tax professional, or • Visit the Department of Revenue web site at www.revenue.state.mn.us State Property Tax Refunds & Deferral

  19. State Property Tax Refunds & Deferral

  20. State Property Tax Refunds & Deferral

  21. Striving to be a Model, Rural School District!

  22. Thank You !

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