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Monday’s ISD 197 School Board meeting was dominated by a strategy session for the upcoming referenda and more information on the district’s budget, as well as routine reviews of district policies and goals.
Referendum Update
Superintedent Peter Olson-Skog presented an overview of the district’s budget situation and how two referenda this fall could affect it. The bottom line is that the district needs to raise property taxes in order to avoid significant budget cuts, and the superintendent, school board, and administrative staff are honing their public messaging in hopes of getting a referendum passed.
- How did we get here?
- The major culprit is a state-level change to school funding dating back to 2003. Because of this funding formula, state contributions go up by about 1% each year while district expenses have gone up by about 3% each year. If state funding had kept pace with inflation over the past 23 years, ISD 197 would be getting nearly $1,500 more per student per year from the state.
- Many of the district’s expenses are hard to control. Health insurance is a good example, where premiums have gone up by about 44% over the past several years, a burden that is shared by the district and employees.
- The district has been making budget cuts to close the gap. They’ve cut $3.2 million from the annual budget with minimal impacts to the classroom. They spend considerably less than average on district administration, and they have one of the lowest property tax burdens in the metro area.
- There will be two school funding referenda on this year’s ballot.
- A property tax increase to provide $4.6 million per year to ISD 197 over the next 10 years.
- A change to the state’s Permanent School Fund that would distribute more money to all districts in the state without any tax increases. This increase would cover about 0.2% of ISD 197’s annual budget.
- The first referendum will fix the school’s budget deficit at a cost of $14 per month to the average homeowner. The second referendum would help, but would not solve ISD 197’s budget gap and cuts would still be necessary.
- Taxes are going up in other areas.
- Dakota County is looking at a significant property tax increase.
- West St. Paul is considering a property tax levy of 10-15% (that number is now down to 7.28%).
- “It’s the only one they get to say ‘no’ on.”
- Board Member Byron Schwab summarized a concern shared by many board members and administrators. Despite the district’s responsible budgeting, voters are feeling the squeeze from multiple directions and may not have an appetite to vote for more tax hikes, especially when a “free” increase to school funding is also on the ballot.
Other Items on the Agenda
- Equity policy: Assistant Superintendent Peter Mau presented a regular review of the district’s equity policy. The policy is working well, and the only suggested change was to review the policy every three years going forward instead of every year. Multiple board members reiterated their commitment to the equity policy and praised the work the district has done on this issue. The change in review passed unanimously and was moved to the consent agenda for future readings.
- Board goals: The board conducted a second reading of their annual goals to clarify the role of school liaisons, review and improve the school board website, and to learn more about the district’s technology use policy. The goals were unanimously approved.
- Superintendent goals: The board also conducted a second reading of the superintendent’s goals to implement the board’s strategic plan, make budget decisions after the results of the referendum are known, and to continue meeting one-on-one with district staff. The goals were unanimously approved.
Engage
- Watch: Board Member Jon Vaupel and Superintendent Peter Olson-Skog offer a video recap of the meeting.
- More: Agendas and minutes for ISD 197 School Board meetings are available online.
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