School administration was over-reaching with levy referendum

The failed school referendum was likely the result of the ISD166 administration and board overreaching for funds ($1,276 per student, nearly 3 times the previous levy) in a year where double digit property tax increases were proposed by both the county board and the Grand Marais city council. Another concern was the prospect that the State of Minnesota will increase property values by 10 percent nearly county-wide next year and in turn inflate the various property tax contributions based on property value. The previous school levy of $437 per student was well supported by voters.

Not known by many voters was that there were actually three property tax levies in play…the Voter Approved Levy, a Board Approved Levy and a Local Optional Revenue Levy. In June of this year, hedging their bet on success of the referendum request, the school board passed a “Board-Approved Referendum” levy of $300 per student to take effect should the referendum not pass, effectively precluding the will of the voters. The additional “Local Optional Revenue” levy, which provides $424 per student for school operations was also in place independent of the referendum results. It appears although the district did not receive the $1276 per pupil hoped for about $724 per pupil will still be levied on 2016 property tax statements.

Had the referendum passed, the additional increase was tentatively to be spent on further technology upgrades, drop-out prevention, early childhood programming, special education, eliminating fees for extracurricular activities and to fund other pending items on the ISD166 wish list.

By making the decision to independently hold the school referendum in November 2015, ISD166 will pay for all election balloting costs, referendum meetings and board per diems, promotion and advertising… arguably funds more effectively spent elsewhere.

The morning following the referendum results the school superintendent and the school board chair were on local radio already voicing opinions about another referendum, possibly as soon as next spring, and pondering whether the school would now need to borrow money.

Another referendum or a bond issue for ISD166 looks likely in 2016.

Bob LaMettry
Grand Marais