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Board discusses operating referendum options as a tool to close growing funding gap
Summary
District financial advisers presented operating referendum mechanics and three illustrative levy options; board members asked about breakeven points, enrollment projections and timing, with no vote taken. Staff will include referendum scenarios in the preliminary budget process.
Stewartville Public School District staff and their financial adviser briefed the board Feb. 23 on operating referendum basics, timing and illustrative revenue scenarios to address a growing per‑pupil funding gap.
Staff summarized the district’s fiscal shortfall and explained that an operating referendum can be scheduled in November and extend up to 10 years. The presentation included three revenue scenarios—about $500,000, $750,000 and $1,000,000 in additional annual revenue—showing estimated per‑pupil increases and tax impacts on a sample $400,000 home. Staff said the district would need to weigh enrollment projections and contractual obligations when choosing an amount.
“Currently, as of today, if the allowance increased with inflation, we’d have $1,420 more per student, which would be about $3,000,000 a year,” a staff presenter said to illustrate the size of the gap in funding. Board members pressed for the breakeven or minimum option that would stabilize finances without overcollecting if enrollment continues to decline. Staff said they will include referendum scenarios and a five‑year projection in the preliminary budget and return with options and recommended numbers.
No formal board action was taken; staff framed the briefing as informational and said the board would make any decision about timing and an amount in the months ahead.
