The Town of Morse board will back an operating referendum that is on the Nov. 3 ballot for the Ely school district.
Superintendent Anne Oelke spoke to the board about the upcoming operating referendum for the Ely school district.
She explained why the referendum is being held, mainly because the district has been running in the red for three of the last four years.
She said the district gets its revenue from the state education formula which hasn’t kept up with inflation.
The per pupil number paid by the state is $1,516 per pupil below what it should be to keep up with inflation.
The district has options to increase revenues including capital project levies which are very limited.
The Seasonal Tax Base Replacement Aid is a new program that provides state aid for districts with more than 15% seasonal rec properties.
Ely is one of 75 districts (of 334 total in the state) eligible for this aid.
The new legislation was approved in May of 2026 but the only way to get the funding is to pass a higher per pupil operating referendum. Ely has 35.3% recreational property.
The state will put in 40% of the aid, which would end being a net benefit of $325,698 annually for 10 years.
Seasonal recreation properties will not pay more due to this change. Seasonal property owners remain exempt from operating referendum levies.
State TBRA can reduce the local share paid by local property tax owners. She said cabin owners will see no change, the state pays that share in aid that replaces what exempt seasonal property would have contributed.
“The state provides more support and there is less burden on local taxpayers,” said Oelke.
She said there is a little catch in how the issue is worded on the ballot.
Due to state requirements that ballot question includes wording that voting for the question will raise taxes.
She said the school will commit to underlevy for optional revenue to access the state aid and keep the tax impact at zero.
“We found the sweet spot to have zero impact and receive $325,698 for 10 years. I would rather be super transparent and honest. It’s very complicated,” she said.
Additional revenue will be available for operating expenses.
“We would like to have a year when we are not doing budget reductions,” said Oelke.
She said the district has over 100 employees and there have been significant health insurance cost increases.
She said the district has hired a grant writer with monies from the Ely Educational Foundation but has been turned down on the first three applications.
“This referendum will be vital for us,” said Oelke.
Morse supervisor Bob Berrini said at one time there were 19 kids living on his road, now there are two.
Oelke graduated in 1997 from Ely Memorial with 78 students and this year there are 38 seniors. Ely currently has 486 students enrolled.
Oelke said she is available to answer any questions and invited people to go to the school district website.
Berrini said he would like to see the township support the recreation referendum.
The board approved supporting the referendum with two advertisements.
