School budget cuts will be inevitable next year unless the public approves an excess levy referendum, school officials said Monday.

Tuesday, August 21, 2001

School budget cuts will be inevitable next year unless the public approves an excess levy referendum, school officials said Monday.

&uot;The more we looked at the numbers, the more it became clear. This fall, we’re not going to have to make a decision about if we should have a levy referendum but how much it should be,&uot; said board member Ken Petersen.

The increase in the general education formula passed by the legislature – 2.6 percent over each of the next two years – is not enough to continue current staffing levels and program offerings in 2002-2003, Petersen said.

&uot;When you factor in a drop in our enrollment, it’s apparent that we can’t maintain our district and provide the types of programs we’re accustomed to providing with this type of funding,&uot; he said.

The increase in the general-education levy barely approaches the rate of inflation, said Director of Finance Mark Stotts. Combined with projected enrollment drops and higher energy costs, it’s clear the district will need another source of revenue next year, he said.

&uot;It actually amounts to about a 2 percent increase each year, which puts the district in a tough situation with our costs rising at a much higher rate,&uot; Stotts said. &uot;The legislature didn’t do us any favors.&uot;

Petersen said the timing is right for a levy referendum. Property owners will see significant property-tax reductions, and the district just paid off the 1991 bond levy that funded improvements to the old Central High School building.

&uot;We want to give the public as much information as possible and let them decide what kind of education they want to have in Albert Lea,&uot; Petersen said.

Stotts said the administration will explore an appropriate figure for the levy referendum and present a recommendation to the board at its next regular meeting Sept. 4.

An excess levy is designed to raise extra money for school districts through local property taxes. If voters approve the levy, the school can raise a set amount per student, on top of its funding already received from the state.

If the board approves the levy, the public will vote on the issue Nov. 6.