Questions and Answers

The budget for the 2021-22 school year is $260 million with a combination of state, federal and local funding sources. Each student in SoWashCo Schools generates about $13,800 of general education revenue. SoWashCo Schools has approved cuts of $9.4 million for the 2021-22 school year.

If state funding had kept pace with inflation over the past 18 years, we would have received nearly $561 more per student last school year – or a total of $10.4 million.

If state funding had kept up with inflation over the past 18 years, we would have received nearly $561 more per student last school year - or a total of $10.4 million. Required special education programs and English learner services cost the district $24 million more than it receives each year, putting additional pressure on the general fund budget.

SoWashCo Schools board policy requires a fund balance of 5-9%. We are currently operating with a 4.7% fund balance which is only 2.5 weeks of operating costs. A fund balance helps school districts prepare for any emergencies such as state shutdowns, unexpected operating increases, or more recently, the pandemic. In addition, a school district's fund balance is a major factor in determining the district's bond rating (credit rating). Good bond ratings help save taxpayers money. The more we can save, the more stable the school district will be. 

SoWashCo Schools is the sixth largest school district in the state, but we spend less than the state and metro averages on district administration. Administrators in the tier one and tier two staff groups are part of mandatory four-day and two-day furloughs during the 2021-22 school year. It is always our goal to keep cuts away from classrooms and student programs, but with ongoing budget shortfalls, it becomes increasingly difficult to limit the impact on schools and programs.

In January 2021, SoWashCo Schools was forced to make $9.4 million in budget adjustments for the 2021-22 school in order to present a balanced budget. These cuts included staff, student programs and services. As a large school district, we cannot continue to spend more than we receive. Though federal, state and local funds are helpful, they have not kept pace with inflation for years. For example,  inadequate state and federal funding for required special education services costs the district $20.8 million more than it receives each year, and English learner services costs $3.4 million, putting additional pressure on the operating budget. 

Additionally, the need for technology in our school district is growing and became more urgent during the pandemic. SoWashCo Schools was forced to move up its schedule to provide devices for every student. Because the state provides a limited amount of funds for technology, this funding would allow the district to directly fund software, devices and technology to better serve students and parents into the future. 

Yes. The revenue needed to fund education is not determined by the school board or the school district, rather it is by the state legislature. And though the state provides the majority of funding for schools, the next largest amount is from our local communities. State law allows school districts to ask residents to provide additional funding for schools through local operating levies. Nearly every school district in the state relies on local levies for additional funding for essential operations in our classrooms, for instruction, technology and other school operating costs.

The State of Minnesota recently added 2.45% to the basic education formula for the 2021-22 school year and a 2% increase to the basic funding formula the following school year. Though this is welcome relief, education funding has not kept pace with inflation for years. From groceries to clothing and to school funding, we are all affected by the rising prices of goods and services. If the state funding formula was ties to inflation, school districts would have a much more stable financial base for daily operations and resources for student learning. 

There were three main pieces of legislation that included one-time funding:

• Coronavirus Aid, Relief and Economic Security Act (CARES)
• Coronavirus Response and Relief Supplemental Appropriations Act (CCRSA)
• American Rescue Plan (ARP) 

Each funding source was restricted and had a list of allowable uses, such as operational costs for cleaning supplies and equipment, technology devices, internet access for students and summer programming. The funding for these COVID-19 related costs do not continue once the money is used. Additionally, many of the ESSER funds under the CARES act are being used to fund the Elementary Virtual Learning Academy as we wait for a vaccine for this age group See the overview of the funding sources as presented to the School Board on July 15, 2021.

Because federal funding was based on poverty rate from census data, South Washington County Schools only received $557.88 per student. 

• Anoka-Hennepin – $1,543.71

• Minneapolis  - $7,455.65

• Saint Paul - $9,068.69

• Osseo - $2,080.68

• Rosemount-Apple Valley-Eagan - $1,308.98

• SoWashCo Schools - $557.88

SoWashCo Schools approved cuts of $9.4 million for the 2021-22 school year. 

These cuts are in response to:

• Inadequate state and federal funding

• A growing gap between the cost of required special education and English learner services and the limited reimbursement we receive for those services. 

• Increasing educational needs of our students and increasing educational costs

• An enrollment decrease during the 2020-21 school year by 500 students creating a $5.5 million shortfall

• Spending, including unfunded and required programs, will outpace revenue (the money the district brings in through state funding, taxes, etc.) due to inflation

• Our unassigned fund balance is not within board policy that calls for 5-9% of savings. We are currently operating with a 4.7% unassigned fund balance which is only 2.5 weeks of operations. It is important that school districts have saved money in the unassigned fund balance in the event that something unexpected occurs (like a pandemic). 

These financial pressures make it more challenging to provide what our students need and what our community expects. Increased funding from the operating levy will help us invest more in students while limiting additional budget cuts. We will also continue to seek ways to be more efficient and effective in educating our kids by ending programs and services that overlap or have little impact on student learning.

Because renters do not pay property taxes directly, they may not be affected. Individual landlords who own the rental properties pay for property taxes, and some may choose to pass on any tax increase to their renters through a rent increase. To help offset any increases, renters may be eligible for the Renter's Property Tax Refund. The refund is based on household income and how much property tax was paid through rent, as indicated by your landlord on their annual Certificate of Rent Paid. Learn more here.

The state of Minnesota offers property tax refunds to both homeowners and renters if they meet certain requirements. 

There are two kinds of homeowner refunds, and some people qualify for both:

• If your income is below approximately $116,180 (amount set in January of the year taxes are filed).

• If your property taxes increased more than 12% and at least $100 over the prior year.

Learn more about the homeowners refund here and be sure to apply if you are eligible - more than one-third of those eligible never apply. 

• Renters can also apply for a property tax refund. The refund is based on household income and how much property tax was paid through rent, as indicated by your landlord on their annual Certificate of Rent Paid. Learn about the renter's refund here.

Seniors or disable persons, or if you have dependents, may help your qualify for a subtraction to reduce your household income in relation to the homeowners credit refund. Learn more here.

Every fall, the city, county and school district set their annual levies. These levies determine the amount that property taxpayers will pay to help fund each entity's operating costs. For school districts, this annual levy certification is a critical part of how we fund out schools, staffing and programs.

Unlike the city and the county, schools districts are limited by state law as to the amount they can levy each year. That's why school districts must turn to local voters to approve additional funding through levies on the November ballot. On Nov. 2, voters will be asked to consider a request to increase the school district's operating levy and the capital projects levy for additional funding beyond the annual levy.

The city, county and school district each set their own levy percentage increase (school district levy limits are set by state law). Please note that the percentages should not be added together to determine total tax impact on a home, and the levy increase percent is not equal to the percent increase in taxes paid.  

You can determine the amount your taxes will increase if votes approve SoWashCo Schools operating levy request by referring to these tax impact charts.

SoWashCo Schools works hard to use taxpayer dollars wisely and efficiently to support our kids. We are proud to share that we:

• Received the 2020 Certificate in Excellence in Financial Reporting from the Association of School Business Officials (ASBO) for financial reporting and transparency for the 13th consecutive year.
• Received the Minnesota Department of Education School Finance Award in 2020 for the seventh year in a row.
• Navigated budget reductions of $9.4 million during the 2020-21 school year to present a balanced budget. 
• Spent less than both the state average and metro average on district administration and more on classroom instruction as a percent of the operating budget. 

SoWashCo Schools has also established an internal committee to review staffing requests before adding new positions, as well as a committee to ensure we hold to the budget cuts approved by the school board in January 2021. The district also hosts a Citizens Finance Advisory Committee (CFAC). The group provides recommendations to the School Board regarding financial topics. Individuals also assist in communicating school district financial information to residents throughout the seven cities and townships served by SoWashCo Schools.

• Distribution of more than 18,500 devices to students and 1,500 to staff during the pandemic.
• Distribution of hotspots for families who needed internet access at home during distance learning.
• Set up advanced classes to run digitally (Project Lead the Way) so students did not have to attend a physical lab.
• Experimenting with distance teaching - allowing classes with low-enrollment to continue in a virtual environment across high schools rather than canceling the class at the individual school.
• Setting up reliable access to devices, software and curriculum to provide a districtwide online school in the 2022-23 school year called SoWashCo Online.

Operating Levy
If approved by voters, the estimated tax impact on the average homeowner, with a home worth $300,000, would be about $13.16 per month. There will be adjustments for inflation each year

Capital Projects Levy
If approved by voters, the estimated tax impact on the average homeowner, with a home worth $300,000, would be about $4.16 per month. There will be no change in the cost from year-to-year. 

You can determine the amount your taxes will increase if voters approve the levy requests by entering your property's estimated market value.

Tax Impact Calculator

Operating levies are voter-approved and provide funding for classrooms, instruction and other school operating costs.

SoWashCo Schools is asking voters to consider revoking the 2015 and 2017 operating levies to create a new operating levy that increases funds from $1,536.60 per student to $1,886.60 per student. The operating levy would generate an additional $6.9 million per year to fund investments in schools and student needs at all grade levels. The funds would include an annual increase at the rate of inflation for 10 years unless otherwise revoked or reduced as provided by law. 

If voters approve the request, the funding will help:

• Provide stability in operations so the district can address challenges with growth in the community, facility needs and uneven enrollment increases

• Limit additional budget cuts to programs and staffing

• Offset required and unfunded costs for special education, English learner and related services

• On track to meet the school board policy that requires 5-9% of savings

If voters do not approve the request, SoWashCo Schools will face additional budget cuts likely resulting in.

• Potential cuts to: 

  • Staff and academic programs

  • Athletics and activities programming

  • Administration and support staff

• Reexamination of attendance boundaries to reduce transportation costs

• Closing or repurposing low-enrollment schools (before a long-range facilities plan can address these challenges properly) 

If all factors stay the same (state law, property values, student enrollment, etc.), the only change will be annual inflation adjustments, which has become standard for most school district operating levies. If approved by voters, the estimated tax impact on the average homeowner, with a home worth $300,000, would be about $13.16 per month. You can determine the amount your taxes will increase if voters approve the operating levy request by referring to these tax impact charts.

In 2013, voters approved two ballot questions. The first question included a renewal of the 2003 operating levy to generate approximately $4.6 million annually for the general fund.

The second question increased the operating levy by $337 per pupil or a total of approximately $6.9 million annually for the general fund, beginning in 2014-15 for the next 10 years. The funds were used for security and safety improvements (secured entryways to six of our elementary buildings, classroom door locks, glass replacement and video surveillance upgrades), improvement of staff to student ratio, technology infrastructure and for financial stability of the district. Local Optional Revenue (LOR) Minnesota Statues, section 125c.19, subdivisions 2(e), made all school district eligible for additional per pupil funding. This removed the need for SoWashCo Schools to renew the 2013 operating levy.

In 2015, voters approved a new operating levy to $525 per pupil at approximately $10.3 million annually. The funds sustained educational programs and opportunities, maintained financial stability and helped with recruiting and retaining a high-quality workforce.

In 2017, voters approved the renewal of a 2007 operating referendum for $780.72 per pupil at $15.3 million. The funds helped continue high-quality educational services and effective class sizes.

A second ballot question provided an additional $375 per pupil at approximately $7.5 million. The funds were to stabilize the financial health of the district, enhance educational programs and opportunities and provide training and support for staff. 

Because levies apply for only 10 years, school districts must go back to voters to renew any existing levies. This November, revoking and renewing the 2015 and 2017 levies will combine them into one levy that will combine them into one levy that will not need to be renewed by voters until 2031. 

Previously, none of the levies were tied to inflation. Therefore, as the years have progressed, the money didn't go as far as when the levy was first passed. Levies tied to inflation are now a standard practice among school districts.

Public schools provide many services that are available to students who attend non-public and charter schools. Any SoWashCo Schools budget increase or decrease can impact the level, availability or quality of services available for all children in our district. For example, SoWashCo Schools provides:

• Early Childhood screening for any pre-kindergarten child who lives in the district.

• School bus transportation for approximately 1,600 non-public school students.

• Additional services for students - such as special education or home-based education due to extended illness - regardless of what type of school they attend.

• Health services to nearly all non-public schools in the district.

In addition: 

• Many students may enroll in a SoWashCo School at some point throughout PreK-12 even if they also attend a non-public or charter school.

• Many non-public students receive early childhood or special education service through SoWashCo Schools.

• Research shows that public school quality is one of the most important factors in home value.

Every year the Minnesota Department of Education sets the annual inflation rate, based on the Consumer Price Index (CPI), and it has averaged about 1.8% per year for the past seven years. That percentage increase is the rate applied to the per-student amount the school district receives - it is NOT applied directly as an increase in property owner's taxes. The actual property tax impact on individual homeowners will be lower than inflation percentage because the increase in per-student funding is spread over the entire tax base.

During the pandemic, SoWashCo Schools became a district that offered a device to every student. Though federal funding provided the funds necessary to purchase these devices, they require ongoing maintenance and care. As the sixth largest district int he state, our families, students and staff expect state -of-the-art technology moving forward.

Thankfully, SoWashCo Schools was already in the process of strengthening the ties between technology and advancing student learning in new and creative ways. Devices are just one tool in helping students gain higher-level learning and setting them up for future careers that do not yet exist. To continue as a strong and competitive district and to meet our community's expectations, we must continue what we learned during the pandemic and further strengthen personalized learning through technology.

Because levies only apply for 10 years, school districts must go back to voters to renew any existing levies. This November, revoking and renewing the 2017 capital projects levy will allow the district to avoid requesting a capital project renewal until 2031.

SoWashCo Schools has the lowest capital projects levy in the state with $112 per student for technology. This amount does not cover the cost of a device, accessories and licenses for iPads at $350 each (K-2) and Chromebooks at $310 each (3-12). To continue as a strong district and meet our community's expectations, we must find dedicated funding sources for technology moving forward.

Shown: School districts with a capital projects levy among the top 10 districts by student population. 

A capital projects levy is a set amount the district levies to provide funds for the acquisition and installation of improved instructional technology, technology systems, technology support staffing and maintenance and support for student devices.

SoWashCo Schools is asking voters to consider revoking the current capital project levy of $2 million and to replace it with a new capital projects levy to raise approximately $5 million for technology (which equates to an additional $3 million per year). The increase would raise the funding from $112 per student to $270 per student for 10 years.

No. There will be no change in the cost from year-to-year. If approved by voters, the estimated tax impact on the average homeowner, with a home worth $300,000, would be about $4.16 per month. You can determine the amount your taxes will increase if voters approve the capital projects levy request by referring to these tax impact charts.

The current technology budget is not keeping pace with the growing reliance on technology in education which became more urgent during the pandemic. 

If voters approve the request, the funding would help:

• Expand digital access to curriculum and learning tools

• Update educational and business software licensing

• Maintain the devices distributed to students and staff during the pandemic with a refresh cycle to keep devices updated

• Strengthen personalized learning through technology

• Enhance technology infrastructure (wifi, network equipment, etc.)

If voters do not approve the request, SoWashCo Schools will face additional budget cuts likely resulting in:

• Device and technology costs would come from the general fund 

• Technology support and device maintenance for families and staff would be limited

• Device upgrade cycles would be delayed

In 2017, voters approved a capital projects levy that provided $2 million in funding to help ensure students had access to educational software and functional technology at school.

The funds helped:

• Enhance technology infrastructure to provide greater access to digital resources and statewide assessments.

• Provide access to digital resources so learning could occur virtually, rather than only going to a lab.

• Establish more reliable wifi, classroom technology and digital security.