PLSAS’ current operating levy is one of the lowest in the area, which means our district has less money than neighboring districts to operate our schools and provide competitive programming for students.

What steps has the district taken to reduce its budget and cut spending?

Monitoring the budget is a critical and ongoing process for the district. Since 2019-2020, we have used approximately $5 million in fund balance (‘savings account’) to present a balanced budget to the School Board. For the 2024-2025 school year, we cut approximately $4 million from our budget and utilize fund balance to cover increased costs. 

Why did the district decide to ask for an operating levy for $1,803 per student?

When determining the amount for the proposed operating levy, district leaders and the School Board carefully considered several options. Because state funding has not kept up with inflation and the district’s current levy is significantly lower than most other districts, it was decided to set the operating levy amount at a level where the district’s finances could be stabilized and dollars would be available to invest in programs and services desired by many in our community.

Without structural changes, the district will face declining revenues, rising expenses and a depleted fund balance by 2028, risking Statutory Operating Debt. The table below shows the impact on the district’s fund balance ('savings account’) at various levels. The $1,803 level with a tax impact of $45 additional per month on the average home in the district would allow the district to stabilize the budget and provide additional funds to invest in student academic programs and safety.

The Minnesota Legislature provided revenue for school districts - why does the district need additional funding from an operating levy?

In 2023, the state of Minnesota provided an increase in funding to all districts. However, alongside this funding boost, the state required districts to implement new programs and initiatives without providing sufficient funds to cover the costs. These unfunded mandates have put additional pressure on our district’s annual budget. 

Like many other districts, a persistent funding gap remains for PLSAS due to historic shortfalls in funding. If state funding had kept pace with inflation since 2003, our district would have received more than $9 million in additional funding last year.

How does the district cost-per-student spending compare to other districts?

Our cost-per-student spending is nearly $2,500 below the state average. While this shows we spend tax dollars wisely, it also highlights a challenge: we lack the necessary funding to address priorities identified by many in our community, such as improving safety measures in our schools, enhancing personalized learning experiences and expanding career pathway opportunities for students. Compared to many other metro-area districts, PLSAS has much less revenue to spend to address the needs of our students.