Marshall Public Schools to Ask Voters to Approve Operating Referendum After Board Hears $1.8 Million Shortfall

Marshall Public School District administrators told the school board they expect a $1,800,000 operating deficit for the coming year and intend to ask voters in November to approve an operating referendum to stabilize district finances. The referendum, if passed, would generate roughly $2,000,000 annually for 10 years, administrators said. The announcement came during the administrators' report. Jeremy, the district administrator, told the board the shortfall "is going to deplete budget reserves without additional funding," and said the district plans to put an operating referendum on the November ballot and direct people to tigers.org for more information. Why it matters: the referendum would be a direct voter decision affecting annual revenue available for district operations, staffing and programs. Board members voted to approve routine items and the month's bills at the meeting, so the district will proceed with outreach and planning ahead of the ballot. At the same meeting the district's treasurer reported on investment holdings and recent awards. Sarah, the district treasurer, said the district held just over $10,000,000 in the Minnesota School District Liquid Asset Fund at June 30, a drop of about $887,000 from the prior year. Of that total, roughly $1,800,000 is invested in certificates of deposit with staggered maturities; reinvestment rates available range from about 4.5% to 4.7%. The board also received notice from the Association of School Business Officials International that Marshall Public Schools earned the Certificate of Excellence in Financial Reporting for the fiscal year ending June 30, 2024. Discussion vs. action: administrators presented the financial picture and the referendum plan (discussion/direction). The board approved the July 2025 bills and the consent agenda during the meeting (formal actions). Actions recorded: a motion to approve the July 2025 bills was moved from the dais and seconded by Board member Jeff; the motion carried and the bills were approved. A consent agenda motion by Sarah Renske, seconded by Jeff, also carried earlier in the meeting. Board members and staff said they will continue outreach to explain the referendum and monitor budget reserves as the district prepares ballot materials and public information. Looking ahead: the board will not collect additional local revenue until voters act; administrators said they will provide more information to the public ahead of the November election.