SAINT PAUL — Nine AMSD school districts will have a total of 15 referendum questions on the ballot on Nov. 3 — speaking to the growing financial challenges Minnesota school districts face as costs continue to outpace funding provided by the state.
The 2026 fall referendums come on the heels of a survey of AMSD member school districts earlier this year projecting a combined budget shortfall of more than $223 million for 2026-27, driven by rising operational costs, a reduction in compensatory revenue and special education transportation reimbursement, and new state programs and requirements that are not fully funded.
More than two thirds of AMSD districts surveyed in spring 2026 projected shortfalls including Duluth Public Schools, estimating a $4 million deficit, and North St. Paul-Maplewood-Oakdale, which projected a $5 million shortfall. Because school districts are required by state law to operate with balanced budgets, painful budget cuts had to be adopted.
North St. Paul-Maplewood-Oakdale and Duluth are among the five districts with six operating referendum questions on the November ballot. Four districts are seeking capital project levies (one of which is a renewal), and three districts are seeking to approve five 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 from basic revenue — often referred to as the basic formula. Basic revenue accounted for about 67.5 percent of general education revenue in FY26 and is used to pay for employee salaries and benefits, supplies, and other operational costs. The basic formula has been badly eroded by inflation over the last two decades. It would be $1,474 per pupil higher today if it had simply kept pace with inflation since 2003.
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, two key local levies—voter-approved referendum revenue (9.5 percent) and local optional revenue (6 percent)—provide more than 15 percent of general education revenue. Some school districts receive more than 20 percent of their general education revenue from these sources. 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 be $260 per pupil higher today.
Four of the AMSD districts going to voters this fall are seeking Capital Projects referendums, which are most 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, leaving school districts dependent on local capital project levies.
Major building projects are also funded primarily at the local level, and three districts are going to their local voters for building bonds to address facilities needs. The State provides limited funding for deferred maintenance and equipment purchases but new construction, additions to existing buildings, and major renovations are financed by the sale of bonds following the approval of a bond referendum by the voters.
By law each district going out for a referendum is required to provide detailed information about the referendum and project, as well as provide an estimate of costs and the impact on homeowners in the district. The ballot language for the 2026 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 for more specific details and information about their proposed referendums.
