SAINT PAUL — Fifteen AMSD school districts will have 21 referendum questions on the ballot on Nov. 4 — a significant number that speaks to the financial challenges Minnesota school districts face as costs continue to outpace funding provided by the state.
This year’s ballot questions include operating referendum requests, capital project levy renewals or increases, and bond questions. A chart on the AMSD website outlines the AMSD member district referendum questions and includes links to the school district websites where detailed information about the referendum questions can be found. Voters are encouraged to contact their local school officials if they have questions about their school district’s referendum.
Why referendums are necessary
The most important source of financial support for school districts comes through the General Education Program. There are several components to the General Education Program with the vast majority provided by basic revenue — often referred to as the basic formula. Basic revenue accounted for 67.9 percent of general education revenue in FY25 and is used to pay for employee salaries and benefits, supply costs and other operational costs. The basic formula has been badly eroded by inflation over the last two decades. Had it kept pace with inflation since 2003 it would have been $1,364 per pupil higher in the 2024-25 school year.
The federal government provides a very modest share of education funding and even that level could drop following adoption of the federal budget this fall. Falling federal revenue and state funding that fails to keep pace with rising costs elevates the importance of local operating referendums in providing the resources school districts need to serve their students.
Education funding in Minnesota has long been a State and local partnership. As illustrated in the graph below, two key local levies, voter approved referendum revenue (9.3 percent) and local optional revenue (6.2 percent), provide more than 15 percent of general education revenue. Local optional revenue, like the basic formula, has lost considerable ground to inflation since it went into effect in 2014. If it had simply kept pace with inflation since 2014, it would been $250 per pupil higher in FY25.
Seven of the AMSD districts going to voters this fall are seeking Capital Projects referendums, which are commonly used to ensure safe and secure school buildings and to provide the technology students need to succeed in our digital economy. The State does not provide a dedicated funding stream for technology.
Major building projects are also funded primarily at the local level, and four districts are going to their local voters for building bonds. The State provides limited funding for deferred maintenance and equipment purchases but new construction, additions to existing buildings, and major renovations are generally financed by the sale of bonds following the approval of a bond referendum by the voters.
By law each district going out for referendums of any type are required to provide detailed information about the referendums and projects, as well as provide an estimate of costs and the impact on homeowners in the district. The ballot language for the 2025 election is available on the MN Secretary of State’s website. Voters can access their sample ballots by entering their address and zip code. Voters are also encouraged to visit their school district website and talk to their local school officials for more specific details and information about their proposed referendums.
