The Jordan school district hasn't sent anything out on the reasons why they need to ask for an operating levy. I thought I would beat them to the punch.

What is an operating levy?
• An operating levy is a locally approved levy (or tax) that helps support student programs and services. Operating levies provide a certain amount of revenue per student. (“per pupil unit”) per year and may be authorized to up to a 10-year period.

• While the majority of education funding is provided by the State (and determined by the State Legislature), voter-approved operating levy revenues are authorized by local school district residents to provide additional funding to the local district’s own students.

• The cost of operating levies is shared by homeowners and businesses. Farmers pay only on the house, garage and one acre (all other farmland is exempt). Citizens who do not own property (including renters) do not pay school taxes.

• In the past, operating levies were called “excess levies,” because they provided funds for “extra” programs and opportunities. In recent years, though, state funding has not been keeping pace with increasing costs. As a result, most Minnesota school districts depend on operating levies to help cover the annual cost of maintaining basic student programs and services.

How are bond and operating levies different?
• Bond revenues (“building revenues”) support building or renovating school facilities. A building referendum seeks authority to issue bonds to build or renovate school facilities. Jordan recently approved a bond referendum for the new high school.

• Operating levy revenues (generated by operating levies) are used to operate schools and support student programs and services.

• By law, these two kinds of dollars are separate. Building dollars are designated for building or other capital needs, while operating levy dollars are designated for operating student programs and schools, including ongoing technology and building maintenance. of this fall, 300 of 340 (90%) of the school districts in Minnesota have an operating levy in place for 2008-2009.

Interesting Information
As of this fall, 300 of 340 school districts (90%) in Minnesota have an operating levy in place for 2008-2009. Last year is was 86%

The state average is $760 per pupil unit.

Districts range up to $2, 802 per pupil unit.

Some questions that need to be answered by the district
What is the school board asking voters to consider?
Why do we need an operating levy?
What other area school districts have operating levy revenues?
What will the operating levy be used for?
What will the operating levy cost property owners?
What will happen if the operating levy fails? (That's a big one)

Lastly what is the state of Jordan's fund balance? A fund balance is like an emergency fund that a district sets aside to help cover unforseen expenses or shortfalls in annual budgets. Having an adequate fund balance enables districts to have a healthy cash flow - pay bills, make the payroll each month, and avoid having to borrow money.