Thanks to Inver Grove Ford for their support.
School District 197 voters will find two separate property tax levies on the ballot this fall to determine district funding going forward. One is a renewal of a capital levy for technology and the other is a new operating levy to close funding gaps.
Four school board seats will also be on the ballot. See our voter’s guide for additional ISD 197 election coverage.
New Operating Levy
First, voters will consider a new operating levy:
Question 1
Approve a $731 per-student operating levy increase. The additional funds will enable the district to maintain class sizes and avoid budget cuts to programs and staff.
If question #1 were approved, property taxes would increase $153 per year for the average-priced $350,000 home in our area (around $12.75 per month).
- Cost: This levy will raise $731 per pupil or approximately $4 million annually. That works out to $153 per year for the average home valued at $350,000.
- Purpose: Cover rising costs including inflation, competitive salaries, and inadequate state funding for special education and English Language Learners. Other priorities include expanded reading and math interventions, additional counselors, mental health and behavior supports, and English as a Second Language (ESL) programming.
- Timeframe: If approved, this levy would last for 10 years before coming up for renewal by a vote of the school board in 2034.
- Inflation adjusted?: This levy is tied to inflation, using a Minnesota Department of Education calculation based on a consumer price index for government organizations.
Voting Yes: A ‘yes’ vote will increase taxes by $153 per year for the average home for 10 years and give the district the extra funding it says it needs to avoid cuts and potentially tackle additional goals.
Voting No: A ‘no’ vote will leave taxes as is and likely force ISD 197 to look at $4 million in budget cuts. The administration would get community input on any cuts, but it would likely mean increased class sizes and reduced programs and services. $4 million works out to about 40 teachers.
Renewing Tech Levy
Next up for voters is whether or not to renew a capital project levy:
Question 2
Renew the previously approved capital project levy (also called the technology levy), which provides district-wide technology infrastructure and network improvements, the purchase of student and staff devices, updates to classroom technologies, and more.
Approval of the capital project levy would not result in an increase in property taxes.
- Cost: This levy raises approximately $2.3 million annually. That works out to $75 per year for the average home valued at $350,000.
- Purpose: Technology improvements, including devices for students and staff, internet access and fiber connectivity, telecommunications, tech infrastructure, software licenses, training, and salaries of tech staff.
- Timeframe: Originally approved by voters in 2014, this measure will expire in 2025. If approved, it will extend another 10 years to 2035.
- Inflation adjusted?: This levy is not tied to inflation, it’s a rate applied to the tax base, so it rises and falls with the tax base.
Voting Yes: A ‘yes’ vote will renew the levy for another 10 years, leaving taxes the same as they currently are.
Voting No: A ‘no’ vote will end the levy and save taxpayers $75 per year for an average household. This would leave a $2.3 million hole in the budget and would mean an eventual end to every student getting a device as older devices are no longer replaced. There would be adjustments to the tech staff and other expenses would have to be absorbed into the budget, meaning more cuts elsewhere.
ISD 197 Budget and Context
Here are some common budget questions and helpful context for School District 197.
Why can’t the district just tighten its belt?
Over the past five years, ISD 197 has avoided classroom cuts with deficit spending. They’ve used nearly $2.5 million of savings to shore up the budget, but board policy requires maintaining an 8% fund balance and they’re approaching that line.
The district has made cuts away from the classroom and found other innovative ways to save, including:
- Spending one-third less than the metro average on all forms of administration costs. They made admin cuts in 2013 and have not brought those positions back despite increased enrollment.
- Saving more than $1 million each year with increased energy efficiency and solar power offsets.
- Partnering with neighboring districts, like the TriDistrict Centers for Advanced Professional Studies (CAPS), a college and career readiness program shared with South St. Paul and Inver Grove Heights.
- Seeking grants, including several successful programs from the Minnesota Department of Education.
- Working with the nonprofit ISD 197 Educational Foundation to provide teachers with classroom materials and instructional support.
In short, the administration argues they’ve already tightened the belt.
Wait, didn’t schools just get a lot of money from the state?
Yes and no. ISD 197 sent a budget update in June that details increased costs and expected deficits despite additional state money.
- Bottom line: A $1.1 million shortfall over three years. Add in inflation and other increased costs, and it’s $2.1 million.
How do we compare to neighbors?
- ISD 197 has the third lowest taxes out of 47 metro districts.
- Currently the average home pays $1,013 per year for all school taxes. The state average is $1,349.
- If approved, the new operating levy would increase ISD 197 taxes to $1,166, moving the district from 45th to 41st out of 47 districts.
How many levies are there?
Here are the recent levies and bonds for ISD 197:
- 2014: Capital levy for technology support of $2.3 million (expires in 2025, on the ballot this fall).
- 2016: Operating levy of $6.2 million (expires in 2028).
- 2018: Bonding for construction improvements of $117 million (expires in 2041).
- 2021: Operating levy of $1.2 million (expires in 2032).
Why so many levies?
It’s common for school districts to have multiple levies as needs arise. The administration considered a ‘repeal and replace’ approach that would have combined existing levies with a new levy, but they decided it was too complicated. They argued a simpler approach would be easier for voters to understand and ultimately more transparent.
Informational Meetings
The school district is offering three informational meetings to learn more about the levies on the ballot:
- September 26 from 6:30-8 p.m. at Thompson Park
- October 12 from 6:30-8 p.m. at Two Rivers High School
- October 25 from 6:30-8 p.m. at Two Rivers High School
More Levy Info
- ISD 197 has a website with more detailed information on both levies, including a fact sheet, FAQs, and chart showing specific household impacts.
- There’s also a website from a ‘vote yes’ committee, ISD 197 Building the Future.
- We are unaware of any organized ‘vote no’ effort.
- Video from ISD 197 about the levies:
This election coverage happens thanks to our members. Consider joining them and supporting neighborhood news, starting at just $3 per month.
