Dateline Moundsview, Mn. : School Beat: Election 2006 Levy Limit Vote

All across America school districts that have faced declining enrollment due to decreasing elementary school children per household, are now facing expiring levy limit exceptions and thus either have to have these levy limit exceptions renewed or else face dire budget cuts. Click on the post for the website of Moundsview Minn Schools and the detailed consequences of a possible voter rejection tomorrow.

While Evansville has faced budget woes over the past decade due to Wisconsin rate structure, it has not had to face declining enrollment. It is interesting though to learn from the dance step that was danced in Moundsview, Mn. to get into this financial mess. It gives one pause.

As an Observer, one can see the equation that emerges from the Moundsview model.

1) Expand services and programs beyond sustainable or fiscally reimbursable prudent levels---or tax levels that out of metro legislators in rural farming districts will support.

2) Bust levy limits to finance desired or marketed programs, or essential programs.

3) As one encounters declining enrollment, threaten cessation of major programs if levy limit exception is not renewed.

4) In either case, the solution for Moundsview is only for one year. Next year, they will have to increase the levy somehow.

We must understand that Moundsview is an award winning school district with a large number of National Merit Scholars. It is also in a very affluent area of the Twin Cites. Taxes will go up. A Lot. The folks in Moundsview can afford it. Still, it is an interesting case study. Not all communites can afford large increases in property tax without seriously affecting seniors.

It provides a warning sign for parents and school districts regarding adding services that are not necessary, required by law, or services that cannot be financially justified on the basis of state funding formulas....i.e. One cannot make money by losing a little on each sale. One cannot add programs in an environment of underfunded state formulas and come out.....or at least the Observer cannot figure out how...

It also should be a call for a change in the state funding formula--although given the political mix in both Minnesota and Wisconsin, I am not sure how realistic this is.

You make the call.