REGIONAL — Voters rejected both of ISD 2142’s proposed school funding measures Tuesday, denying the district additional operating revenue and a capital projects levy.
Both ballot questions failed by substantial margins, with voters opposing the measures despite district officials’ warnings about mounting financial pressures from declining enrollment and rising operating costs.
The first question, which would have provided additional revenue of $3,160 per pupil, with approximately 45 percent funded through state aid and the remainder through local property taxes, received 3,894 votes in favor and 5,428 against. The measure failed with 41.77 percent support and 58.23 percent opposition.
If passed, the measure would have generated roughly $2.65 million a year through the Seasonal Tax Base Replacement Aid program, money made available by the Legislature last year that other districts around the state tapped into this election.
The second question, which sought approval for a $1.5 million annual capital projects levy over 10 years, also failed. The proposal received 3,442 votes in favor and 5,814 against, with 37.19 percent supporting the measure and 62.81 percent opposing it.
The measures were presented against a backdrop of financial challenges for the district. ISD 2142, which is currently in statutory operating debt, has experienced declining enrollment over the last several years, contributing to a significant loss in state funding. At the same time, costs associated with transportation, employee health care, technology, and other operations have continued to increase.
Minnesota voters did approve a separate statewide constitutional amendment increasing distributions from the state’s Permanent School Fund to public school districts. The amendment will net the school district around $61,000 a year. But that’s a drop in the bucket for a sprawling school district that’s facing a potential $ 6 million budget deficit. And that’s after the district has already implemented painful cuts over the past two years.
Incumbents re-elected
The district’s financial woes weren’t enough to prompt many challengers to seek a shakeup on the school board. Incumbent candidates Lynn Hilde and Mallory Manick ran unopposed and kept their seats on the board.
In the one contested race, in Tower-Soudan, incumbent Ron Marinaro retained his seat. He will remain with the current board as it addresses the financial implications of Tuesday’s results.
The referendum outcomes are likely to shape upcoming discussions about district spending, staffing, programming and future funding proposals as school officials work to address the current budget shortfall.