CCP 02-18-2003 - Laserfiche WebLink

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...".4,..- Mounds View ("1"lf PUBLIC SCHOOLS School District Levies: Functions and Limitations Published on November 8. 2002, at www.moundsviewschools.OTIl Ever wonder where school districts get their money? In Minnesota, schools gain revenue from two primary sources: the state's Basic Revenue Allowance and through local property taxes. The collection of these property taxes deserves a closer look The county collects property taxes through a levy. These levies can take one of three forms. 1. Levies that occur without voter approval. These would include a crime levy, which can only be used for crime prevention staffing and training. Other examples are levies for health and safety, leases and altemative facilities. 2. A bond levy that requires voter approval through the referendum process. Bond levies raise money that can only be used for new construction or additions to school buildings. These funds cannot be used to run or operate schools. 3. An operating levy that requires voter approval through the referendum process. Operating levies provide money above the state allocation to be used for operational expenses such as staff salaries, supplies, heating expenses, transportation and co- curricular programs. These are the funds that it takes to run and operate schools. Who determines if voter approval is necessary? The State Legislature creates those laws and also establishes the maximum dollar amount and number of years that a levy can be applied. Currently, Mounds View Public Schools can levy a maximum of $837.38 per pupil for operating expenses for a maximum of 10 years. This revenue is in addition to the 2002-2003 Basic Revenue Allowance of$4,601 per pupiL Today, the District has two voter-approved levies in progress. In May 1999, district residents passed an $80 million dollar bond referendum. This money can't be used to operate schools. The revenue can only be used to renovate all of the school buildings in Mounds View Public Schools. This process is well underway and remains on schedule for completion in 2004. In 1989, 10 years before the construction bond referendum, residents voted to approve an operating levy. Currently, that levy generates $3 I 6.08 per pupil in revenue and is scheduled to end in 2008. In 2001, the Legislature increased the Basic Revenue Allowance by $415 per student, but Mounds View Public Schools also realized a shift of $415 at the same time. That's because the Legislature also reduced our operating levy by $415 per student. At that time, the Legislature also gave school districts the right to ask voters to restore the $415 through an operating levy. In 2001, voters in the Mounds View district defeated that request. Given the current financial crisis at both the state and school district level, it is likely that the subject oflevies will be a topic of discussion during the upcoming Legislative session that begins in January. . , , . . a