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Even though state funding has declined in real (inflation adjusted) dollars, total school district revenue has increased due to massive increases in referendum levies.

Wrong again. While there have been large increases in referendum levies, these increases have not been sufficient to offset losses in state aid. Consequently, total school district revenues have declined in real dollars per pupil.

Total school property taxes have increased by nearly $300 in real dollars per pupil from FY 2003 to FY 2005. However, this increase in property taxes has not been sufficient to offset the decline in state aid, which fell by over $500 in real dollars per pupil over the same period. (Source for both amounts: Minnesota Department of Finance, “Price of Government” report, adjusted for inflation using the implicit price deflator for state and local government purchases.)

At one time, school operating referenda were intended to allow local school districts to supplement state support for general education. However, in 2003 the current administration began overtly counting local operating referendum that had passed—or that were merely projected to pass—to supplant state support.

Even with these referendum increases, total general education revenue declined in real dollars per pupil from FY 2003 to FY 2005.

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