Part 2: Understanding School Finance—Why an Operating Levy Matters
By: Superintendent Brett Benson
One of the most common questions I hear is, "Didn't the district just pass a referendum?"
The answer is yes—but it was a different type of referendum.
In 2024, our community approved a bond referendum to address important facility needs. Those funds are paying for projects such as roofing, HVAC improvements, parking lots, safety upgrades, and other building improvements.
By Minnesota law, those dollars cannot be used for teachers, classroom instruction, student programs, transportation, technology, or daily operating expenses.
Think of it this way: maintaining a home requires two different budgets. One budget pays for replacing the roof or furnace. The other pays for groceries, utilities, and everyday living expenses.
School districts operate the same way.
An operating levy supports the daily work of educating students. It helps fund classroom instruction, student support services, educational materials, technology, transportation, extracurricular activities, and many of the services students benefit from every day.
LCWM's current voter-approved operating levy is $46 per adjusted pupil unit, which is among the lowest in our region. The proposed referendum would increase that amount by $391 per adjusted pupil unit for ten years.
If approved, the district would receive approximately $400,000 annually in additional operating revenue.
Without additional revenue, districts often face difficult decisions regarding staffing, programming, and services as costs continue to outpace revenues.
For homeowners, the estimated tax impact on a home valued at approximately $275,000 would be about $133 per year, or approximately $11 per month. Agricultural land beyond the home site is not subject to the school operating levy.
School finance can be complicated, and we understand that many residents have questions. Our goal throughout this process is to explain how school funding works and provide factual information so our community can make an informed decision.
As always, I encourage anyone with questions to contact me directly.