Levy Referendum discussions: Committee continues to advise School Board

by David Hill Editor Nine full-time equivalent positions and other cuts adding up to $1,231,932 have been proposed for the 2024-25 school year in the Thief River Falls School District. Since 2018, the District has cut over $2.9 million. The proposal this year, also includes significant increases in activity participation fees, a 20% reduction in events, reducing bus routes, and implementing a two-mile transportation zone. In spite of two failed operating referendum requests, the District is again preparing to present an operating levy referendum to voters in November. It has again enlisted the knowledge and skills of ordinary citizens to help prepare for that referendum. Thursday, June 20, these citizens met at the Training Center at Lincoln High School to hear a short presentation, but focus on small groups where they could offer their opinions and ideas on ways to help reach more people with the necessary information. Even with an increase in state funding last year, current formulas are not matching inflation rates, and the increase, though appreciated, did not cover the past 15 years of decreased funding. The Thief River Falls School District has not had a voter-approved operating referendum in place for the past two years. As of fall 2023, 70% of rural school districts in Minnesota had an operating levy in place. This includes all neighboring districts. In fact, the average of voter-approved levies is $1,207 per pupil unit. The District does have a fund balance of 13.6%. The state recommends having a 15% fund balance. If the District uses its fund balance to balance the budget, it would leave only 7.6% in reserves. Should the fund balance get below 2.5%, the District would be identified as being in a state of Statutory Operating Debt. At that point, the Minnesota Department of Education would take over the District budget and determine what cuts are mandatory. The community would lose all local control. Thursday, June 21, Chris Mills, superintendent of schools, said the purpose of meeting with citizens was to share as much information as they could, and learn from them as much as they could about what would help them be successful with their next levy referendum. Without passing a levy referendum, Mills said the Finance Committee estimates the District will have to cut about another $975,000 from its budget. But with or without passing a levy referendum, the District will have to engage in a right-sizing process. Short- and long-term projections are showing a steep decline in enrollment. Next year, Mills said the incoming kindergarten class is expected to be about 90 students, and the graduating class about 140 students. In terms of state aid to the District, each student represents about $10,000. A loss of 50 students represents a reduction of $500,000 in state aid. If current trends continue, in five to 10 years, enrollment in the District could be 1,500 students. This year, enrollment is anticipated to be 1,715. The decline in enrollment is a significant challenge for the District, and will result in some “rightsizing.” If the levy passes, it will mean the District will be able to make cuts where they are needed or happen, not across the board. In comparison with other districts and their taxes, Thief River Falls sits about in the middle. It still has a building cost it is paying off, but no operating levy. About 70% of rural school districts in Minnesota have an operating levy. Mills said he has fielded some emails regarding the levy. In answer to one question, Mills said the operating levy referendum will not impact agricultural land, other than one acre and the homestead. The cuts to date have had an impact on students by: • Increasing class size • Reducing programs, activities and intervention services, and • Losing high-quality teaching staff Mills said they have had some really good people whom the district has had to tell it didn’t have a job for them the next year. Some staff are concerned the District is becoming a District no one wants to apply at because they see no future at the District.