The Ely Public School District has a unique opportunity before it this November, one that could strengthen our schools by bringing additional state funding back to our community without increasing the property- tax impact for all local taxpayers.
This opportunity exists because of bipartisan action taken by the Minnesota Legislature this past May. Lawmakers recognized that school districts with a significant amount of seasonal recreational property have a unique relationship with the state’s tax system. As a result, they created the Seasonal Tax Base Replacement Aid Program (STBRA). This program provides state funding for operating referendums in school districts with significant seasonal recreational property.
To qualify, a school district must have at least 15% of its tax base classified as seasonal recreational property. Ely Public Schools easily meets that requirement, with approximately 35% of our district’s property tax base consisting of seasonal recreational properties.
Here’s why this matters. Seasonal property owners already pay these taxes to the state. This legislation simply allows a portion of those existing tax dollars to be returned to eligible school districts. However, state law requires local voters to approve an operating referendum before districts can access any additional funding.
Many people naturally ask whether this means higher property taxes. The answer is NO. Taxes will not increase on ANY property within the Ely Public School District with the passing of the proposed referendum.
How is that possible? Today, the district receives Local Optional Revenue (LOR), a funding source that does not require voter approval. The LOR currently provides $724 per student, but it is funded entirely through local taxpayers; we receive $0 in state aid through the LOR.
This November, voters will have the opportunity to approve a new 10year operating referendum that would replace the district’s current operating referendum authority. Under the proposed plan, the district would also reduce its Local Optional Revenue levy to $0.
That change is an important part of the plan.
By reducing the LOR levy while accessing the new state funding available through STBRA, Ely Public Schools can increase the resources available for operations while maintaining an estimated $0 property-tax impact.
The proposed operating referendum authority would increase from the current $347.99 per pupil to $1,775 per pupil, with approximately 40% supported through state aid under STBRA.
At the same time, the district’s current $724 per-pupil Local Optional Revenue would be reduced to $0.
The result is significant. The district would receive approximately $325,698 in additional annual operating revenue—without an increase in the local property tax impact.
Switching from an Operating Referendum + Local Optional Revenue to a higher Operating Referendum + no Local Optional Revenue allows us to receive 40% funding from state aid (STBRA).
The additional revenue can help support the things our community values: quality teachers and staff, academics and student achievement, activities and opportunities, and safe, well-maintained facilities.
This proposal is not about asking local taxpayers to simply pay more. It is about taking advantage of a new state funding opportunity specifically designed for districts like Ely and restructuring existing local levies so the district can access those resources while maintaining a $0 estimated property tax impact.
For seasonal property owners, the opportunity is especially significant. Our community has contributed substantially to Minnesota’s tax base through seasonal recreational property, and STBRA provides a mechanism for eligible school districts to receive state funding connected to that tax base.
For Ely students and families, the opportunity is equally important. Additional operating revenue provides the district with greater financial stability and more flexibility to maintain and enhance educational opportunities.
As we approach the November 3 election, we encourage every voter to learn more about the proposal, ask questions, and understand what is being asked of them.
This is a unique opportunity for Ely Public Schools: more resources, no estimated property-tax impact, and an estimated $325,698 in additional annual operating revenue.
We believe this deserves thoughtful consideration—not simply because of what it means for our schools today, but because of what it can mean for Ely students and our community for years to come.
More resources. No tax impact. A win for Ely students and Taxpayers.
