District 88 plans vote on levy referendum Monday

If approved, levy would be $450 per pupil unit

for 10 years

By RACHEL WEDDIG

Journal Staff Writer

NEW ULM -- Seeking an excess levy referendum dominated discussion Thursday night at the District 88 Board meeting.

The board meets Monday at 7 p.m., and it plans to vote on a resolution that will put the issue before voters in November.

Remme said the board would have voted on the resolution Thursday, but two board members were absent from the meeting.

Remme explained the need for an excess levy referendum. If approved, the excess levy referendum will generate a value of $450 per pupil unit for 10 years.

The district's declining enrollment for the past three years is a major reason for needing additional funds, Remme said.

During the 1997-98 school year, there 23 fewer students than the year before; in 1998-1999, 74 fewer students, in 1999-2000; 91 fewer students, and predictions are for 120 fewer student this year.

During the next five school years, Remme also predicted declining enrollments.

School funding is based on the number of pupils served and the the state foundation formula set by the Legislature.

The state foundation formulas have not kept up with the inflation in the 1990s. The rising costs of utility services, transportation, health insurance premiums, labor contracts and special education also had a negative impact on finances.

Remme also went through the budget reductions the school has made during the past three years.

During 1999-2000, the district cut $708,000, during 2000-2001 the district cut $700,000, and during this upcoming school year, the district cut $1.3 million.

These reductions led to significant reductions in staffing administration, teachers, custodial and clerical staff, classroom supplies, business services and more.

"These actions do reduce our quality of education we can provide," Remme said. "Our students deserve better."

If the referendum vote passes on Nov. 6, the recommended amount will allow the district to maintain current programs and to restore section sizes to more reasonable levels than will be experienced this year.

The revenues will be used to reinstate to regular levels the supplies and materials cut in recent years. The funds will also soften the impact of declining enrollment.

Also, the revenue will be used to improve technology in the classrooms and help the district to maintain financial stability with reserves adequate to meet unforeseen demands.

Remme reported some legislative changes for 2001. Property taxation was removed from agricultural land, and recreational property for school referendums. Farm land will see reduced property taxes by 23-27 percent, business and commercial property by 10-12 percent and residential property by 23 percent.

Remme estimated that the referendum would cost approximately $108 in property taxes on an $80,000 home. With the lowering of property taxes, in general, residents still should be paying less on their property taxes if the referendum passes.

In other action, Remme reported that there will be a 25-75 percent increase in the district's property and casualty insurance, which is a group policy through the Minnesota School Board Association. He noted there hadn't been an increase in the insurance in a number of years and it was something that the board had not budgeted for. The direct impact for the district wasn't known yet.