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frequently asked questionsu9Il 1. Didn't we just pass a levy? Yes. In 2003, voters approved an operating levy thar declines by abour $300,000 each year, as a result of declining enrollment. Without it, class sizes, activity fees and transportarion fees would be much higher. It also has helped maintain several programs and student support services. This fall's levy is to replace a levy approved in 1986 that's about to expire in 2008. Without it, the District will lose more than $ 3 million a year. 2. What about the 4% increase from the legislature? As a result of declining enrollment, the funding increase provides only $600,000 a year for the District's 11 schools. 3. Is employee compensation overly generoLls? Salaries and benefits paid to employees are very much in line with other public and civilian employees. . Last year, teacher salaries in Mounds View ranked 320' out of the 50 metro districts. Employee benefits ranked 29,h . % of total employee compensation spent on benefits: Mounds View 22% All Minnesota schools 23% State/local governments 24% Civilian workers 20% Private industry 20% . When it comes to providing retiree benefits, only 26% of District employees are eligible to receive post-employment benefits. This percentage will decline over time. 4. Are we paying more property taxes today for schools than before? It's possible, but total property taxes collected by Mounds View Public Schools are 29% less today than five years ago. Rising homes values do not result in rising revenue for C'rh""l... 5. Why is enrollment declining? The number of school-aged children who live in the District is shrinking. Mounds View continues to attract and enroll 80% of all possible students, and non-resident enrollment is continuing to grow. Demographers consider these very positive results for a second-ring suburban district. 6. If the levy passes, why are more cuts expected in the future? Levies only fund 10% of the District's budget. Solving the District's financial puzzle requires many pieces, including continued downsizing, legislative support and balancing financial constraints with providing competitive employee compensation. (5" page 3,) 7. Why is 01.11' district the one asking for levy support? Mounds View is among many Minnesota districts pursuing levy referendums this fall. In fact, more than 88% of districts rely on operating levies to fund basic, core academic programs. 8. Why is school funding increasingly the responsibility of property taxpayers? Legislators intentionally made property taxes an increasingly important funding mechanism for public education by shifting many funding responsibilities away from the state and onto local taxpayers through levy referendums that fund core programs. In 2001, the Legislature assumed greater responsibility for funding education. Yet state aid has not kept pace with inflation, and recently the Legislature has given school boards more authority to ask for levy support. 9. How much money is really enough? Each year, the School Board sets priorities that if acted upon by the Legislature would produce enough money to meet the District's needs. Last year, the priorities totaled $8 million, yet legislative actions did not produce close to this amount of funding. Examples of priorities include: . Fully fund the srate special education formula. . Provide districts with more options and flexibility to control employee health care costs. . Provide funding to address increased energy costs. . Amend the per-pupil funding formula to consider districts with declining enrollment. 10. If enrollment is declining, shouldn't expenses decline too? Yes, but not at an equivalent rate. For every classroom of students lost, the District loses 3 classrooms of funding. Here's how. Let's say the District loses 25 students in the same class and in the same school. It loses about $150,000 in per-pupil revenue. Cutting a teacher for that class saves only about $50,000. So, there's another $100,000 in cuts that still must be made. At the same time, the school's fixed expenses like utilities, custodial support and insurance all remain and continue to rise with inflation. This is why the State Auditor's 2006 report says, "Districts that experience declining enrollment often are not able to reduce expenditures at the same tate, resulting in increasing per pupil expenditure." -