The Ely Public Schools operating referendum will provide the district $325,698 in additional revenue without raising taxes for voters, said ISD 696 school board member Tom Omerza.
District residents will approve or deny the referendum at the voting booth on Nov. 3.
Omerza presented details on the proposal at this week’s Tuesday Group.
“If you vote yes, your taxes will stay the same. If you vote no, your taxes will stay the same,” Omerza said. “Why not vote yes and get the school district another $325,000?”
If approved, funds would go into effect for the next school year, 2027-2028.
The Ely public schools have operated in a deficit for at least three years now, Omerza said, and the operating referendum will help prevent further cuts.
State funding for education has not kept up with inflation, Omerza said.
“It’s getting harder and harder year by year with increasing costs, especially fixed costs, to fund operations and keep the kids safe and educate them well,” Omerza said.
For fiscal year 2027, Minnesota’s general education formula allowance calculates $7,683 in necessary expenses per student. However, the inflation-adjusted amount would be $9,199 — a funding gap of $1,519 per-pupil.
ISD 696’s upcoming operating referendum will boost the district’s existing per-student revenue from $347.99 to $1,775.
The Seasonal Tax Base Replacement Aid (STBRA) program is among the reasons the district can balance its budget while increasing revenue.
STBRA takes the burden off local taxpayers and requires the state to send collected seasonal taxpayer funds back to ISD 696 and other northern districts. Districts must have a voter- approved operating levy in order to receive the funds.
At least 15% of a district’s property tax base must be seasonal for the area to qualify for the program.
“We’re way over that at 35%,” Omerza said.
With over $325,000 projected to pour into the school district via the operating referendum if voters approve the measure, the school board will under-levy, ensuring tax rates remain the same.
Without the increased revenue the referendum would bring in, the district could face increasingly challenging decisions on programming to cut.
If the school were required to further trim its budget, some electives, extracurriculars and staffing could fall by the wayside.
“It’s getting hard to find places to cut and not affect the kids,” Omerza said. “If passed, this would be a very welcome influx of cash for the school.”
The Ely School Board could have adopted a number of operating referendum proposals, but Omerza said they went with the “sweet spot” that would result in a zero net change in taxes.
Financial firm Ehlers assisted the district with implementing a property tax calculator on their website, clarifying how various tax rate proposals would have impacted individual taxpayers.
Another helping hand for the Ely Public Schools has been the Ely Educational Foundation. ISD 696 balanced their budget this year with the Foundation’s assistance, Omerza said, but the district would be spending in a deficit without their help.
“One of our saving graces for the last couple of years has been the Ely Educational Foundation,” Omerza said. “They’ve been a huge support system for us to help fund a teacher, to fund various things and teacher needs.”
Interested individuals can learn more about the Ely Educational Foundation via the Foundation’s website, which is linked on the ISD 696 website.
