Tax Impact of Operating Referendum

What's the tax impact of providing needed technology and program developments for students at Montevideo Public Schools? About $5 a month increase on a $100,000 home.

Montevideo Public Schools has provided the tax impact of the operating referendum to taxpayers. The first questions would renew the current commitment for technology. The second question would provide additional per pupil support for student programs. 

Minnesota public school districts have become increasingly dependent on voter-approved operating referendums due to state funding changes.

  • In 1993,  65 percent of school districts has referendum authority and received an average of $334 per pupil.
  • in 2019, nearly 100 percent of school districts received referendum revenue at an average of $1,468 per pupil.

What is the district asking for?

  • Question 1: $156.76 per pupil to renew commitment for student technology
  • Question 2: $303.24 additional per pupil to optimize state aid for programs for a total $460 per pupil

About 56 percent of the funds approved would come from state aid due to the state's two tiers of equalization.  Here's how it works:

Tier 1: Equalized at highest level, up to $460 per pupil

  • Many school districts, including Montevideo Public Schools, qualify for this tier.
  • For Montevideo, this means 56 percent of the revenue for the 2020-21 fiscal year is state aid.
Tier 2: Equalized at a lesser degree above $460 per pupil
  • Most school districts, do not qualify for this tier.
  • For Montevideo, this means 14 percent of the revenue for the 2020-21 fiscal year is state aid.

What's the tax impact?

How do operating referendums work?

Operating referendums in Minnesota are authorized by voters as a specific dollar amount per pupil. The terms cannot be more than 10 years and are based on Referendum Market Value (RMV). 

They also can qualify for state equalization aid. State aid portion depends on the district's RMV per resident pupil.