Click here to read a message from the STMA School Board

STMA receives significantly less funding per student than most school districts in Minnesota. In fact, we rank 323 out of 328 districts in total per-pupil revenue. You can view the full rankings here. 

Approximately 84% of our funding comes from the state, and the largest portion is based on student enrollment. While STMA experienced substantial growth in the early 2000s, our enrollment has now stabilized. 

Every Minnesota district receives a base amount of state aid: $7,481 per pupil in FY2026. However, this basic formula has not kept pace with inflation since 1991. If it had, STMA would receive $1,470 more per student, totaling an additional $9 million annually, the equivalent of funding approximately 113 teachers.

Beyond the basic formula amount, the rest of the funding is distributed through a complex system called categorical aid, which varies by district and is determined by state legislators. STMA children qualify for very little of this aid, which is often allocated based on factors outside a district’s control. As a result, STMA receives $2,027 less per pupil than the state average, amounting to about $14 million less each year, or the equivalent of approximately 170 teachers. Click here to see STMA's categorical aid.

Because of this chronic underfunding, STMA is forced to ask for local taxpayer support to help bridge the gap and continue providing high-quality education and services to our students.

STMA is a member of the Lake Conference. While we are similar to districts in the Lake Conference in academics, arts, activities, and athletics, in funding we are very different--see the graph below, which shows the per-pupil funding as well as the per-pupil ranking among 328 school districts.

No. The district does not receive more revenue simply because more homes are built. School funding from local taxpayers is based on a per-pupil amount, not the number of houses.

For example, if the district has an operating levy of $835 per pupil and serves 6,703 students, the district would receive approximately $6.3 million from local taxpayers. This total amount is then shared among all property owners. So, while the district doesn’t receive more money from additional homes, having more taxpayers helps lower the share each household contributes.

In Minnesota, about 72% of public school districts have an operating levy to supplement state funding. Currently, STMA does not have an operating levy in place.

The cost of an operating levy to local taxpayers is influenced by the size and makeup of a district’s tax base, particularly its share of commercial and industrial property. STMA is considered a “property-poor” district, meaning we have limited commercial and industrial development. As a result, the tax burden falls more heavily on residential homeowners.

In contrast, districts with a “property-rich” tax base, those with more businesses and commercial properties, can spread the cost of an operating levy across a broader base, reducing the amount individual homeowners pay. This is why STMA taxpayers often pay more per household for the same amount of school funding compared to residents in neighboring, property-rich districts.

This graph shows the amount that taxpayers in varying districts pay for the same per-pupil operating levy. The disparity in operating levies between school districts is growing and can range from $0 to over $2,929 per pupil, leaving many students without the opportunities they need and deserve.
Source: Schools Advocating for Fair Funding
 

The school district has engaged Ehlers as a municipal advisor to provide referendum planning, debt planning and issuance, financial modeling, and other public finance consultation. As with any professional service provider working with Minnesota school districts, Ehlers is compensated specifically for the services it provides. Ehlers is an independent fiduciary registered with the Municipal Securities Rulemaking Board and regulated by the Securities Exchange Commission, which means the firm and its advisors are obligated by law to act in the best interest of the district, regardless of the outcome of any given election.

Over the past three years, we have made $7.3 million in budget reductions and eliminated 77 staff positions across all job classifications. In addition, we have increased student activity and parking fees, expanded walking distances for students, deferred maintenance projects, reduced student programming and expenditure budgets, and more. These difficult decisions have had a negative impact on our students, staff, families, and community.

Despite these significant efforts, our financial situation remains unsustainable. Without additional revenue, we anticipate further reductions in 2027, including the potential elimination of 19 to 25 more teaching positions, with even deeper cuts projected in the years ahead.

In the 2021 and 2022 special elections, we were asking to add staff back and were including technology updates within the levy. Since then, we listened closely to families and the community and heard that the tax impact was too high. This time, we are including technology updates in the bond, we are spending down the fund balance, and we’re asking for just enough to maintain staffing and programming.

Yes. STMA consistently demonstrates strong financial stewardship. School district finances are highly regulated and closely monitored by the Minnesota Department of Education (MDE). In accordance with state statute, all districts must undergo an annual independent audit. STMA has consistently received clean audit reports and, in 2024, earned a Moody's credit rating upgrade to Aa3, an objective indicator of our strong ability to manage debt and meet financial obligations. We also prioritize transparency and accountability, with all financial reports and data available on the district website.

No. According to our long-standing Finance Advisory Committee—composed of school staff, community members, and city leaders—STMA does not have a spending problem; it has a revenue problem. Following a comprehensive review of district finances and operations, including our annual independent audit and a recent Moody’s credit rating upgrade, the committee’s conclusion is clear: STMA demonstrates strong fiscal responsibility, but current revenue levels are insufficient to meet the district’s growing needs. This challenge is further exacerbated by underfunded and unfunded state mandates, which impose additional financial burdens without providing the necessary resources to support them.

We listened. STMA has prioritized meaningful engagement through forums, advisory committees, and strong partnerships with our cities and county. In FY2025 alone, we hosted:

• 24 student forums
• 2 family listening sessions
• 8 staff listening sessions
• 19 advisory team meetings
• 1 School Board community listening session
• 1 Joint Governance meeting with the Cities of Albertville and St. Michael

These conversations directly shaped the levy and bond proposal and reflect our deep commitment to aligning decisions with the needs of our students and the values of our community. Additionally, our Finance Advisory Committee, composed of local stakeholders, continually reviews district finances. Their conclusion is clear: to maintain the high-quality education our students deserve, we must take action now.

When we engaged with stakeholders to understand why the 2021 and 2022 levy proposals did not pass, the consistent feedback was that the overall tax impact was too much. In response, we worked with our financial advisors to develop a forward-thinking, conservative strategy aimed at minimizing the impact on taxpayers.

This approach, called restructuring, is similar to refinancing a home. It extends the debt payment timeline by seven years  (2032 to 2039) and allows the district to free up space for a new levy and bond without significantly increasing taxes. The goal is to maintain stable tax rates over time while addressing critical district needs and avoiding deeper budget cuts.
 

A bond request and an operating levy are both methods school districts can use to generate revenue and both require voter approval, but they serve different purposes. Put simply, levies are for learning and bonds are for building. 

Operating levies provide sustained funding for the district's day-to-day operational expenses, bridging the gap left by state and federal allocations. These expenses include salaries for teachers and support staff, classroom supplies, utilities, transportation costs, and other operational expenses. 

If Question 1 is approved, the funds will only be spent on supporting student learning and paying and keeping high-quality teachers and staff. If Question 2 is approved, funds can only be used to fund the projects on the list. Question 2 can only pass if Q1 passes.

This is a great question. While new housing developments are visible, a recent demographic study projects only modest enrollment growth, between 0.2% and 1.0% annually, over the next several years. This is considered steady but minimal growth.

To put this into perspective: in FY2025, our kindergarten class had 425 students, while our graduating senior class had 598. That’s a difference of 173 students. So, even with new homes being built, we must gain that many students each year just to break even. This illustrates why enrollment is considered stable rather than significantly increasing.

In 2011, STMA voters approved a 10-year operating referendum for $695 per pupil. However, in 2015, state legislation converted that amount into Local Optional Revenue (LOR), which effectively eliminated the additional funding we were receiving from the voter-approved operating levy. As a result, STMA no longer has an active operating referendum in place.

Minnesota state law permits school districts to hold elections in off years, and we are following all legal requirements. While we would prefer to wait until the 2026 general election, our financial situation is urgent and does not allow for that delay. Without additional funding, the district will be forced this spring to lay off 19–25 teachers, which would significantly increase class sizes and reduce programs and services for students beginning next school year. Holding the election now gives voters the opportunity to prevent these immediate and long-lasting cuts. We are committed to being transparent throughout this process and ensuring our community understands both the urgency of the situation and the legal requirements guiding the timing of this election.

Great question. While STMA does not currently have an operating levy, your property tax statement still includes other types of school-related taxes.

• The line labeled “Voter Approved Levies” includes taxes for previously approved bond referenda, used to fund building projects, not an operating levy. For example, in the sample tax statement below, this amount is $420.28, which reflects past bond funding only, not operating levy dollars.
• The line labeled “Other Local Levies” represents taxes collected for state-authorized purposes such as deferred maintenance, capital outlay (i.e. textbooks and technology), and other specific needs. These levies are established by state law and are often determined by student enrollment and state funding formulas, giving the district minimal control over them. In the sample tax statement below, this amount is $461.23.
• Unlike cities and counties, which can levy taxes directly, school districts must seek voter approval to generate additional revenue.

In summary, while you are paying school district taxes, none of those dollars currently support an operating levy, as STMA does not have one in place.

The proposed levy is based on your home’s estimated market value, not the appraised value or taxable market value. You can find the estimated market value on your property tax statement. The tax calculator add link to calculator also provides information on how to find your estimated market value on your property tax statement.

Calculate Your Tax Impact

According to the Wright County Tax Assessor, the average home value in the STMA community is approximately $400,000. This figure was used as a representative example to help illustrate the estimated tax impact for a typical homeowner.

If the first question is approved, it would have a property tax impact of $17 per month on a home worth $400,000, for taxes payable in 2026. The second question’s property tax impact would be an additional $8.50 per month on a $400,000 home, for taxes payable in 2026.
 
The approval of both questions would lead to an estimated property tax increase of $25.50 per month on a home with an average value of $400,000.

You can view the estimated tax impact for a variety of residential home values, agricultural property, and businesses by using the chart below or by using the tax calculator featured below. The calculator tool will help you understand your specific tax impact based on your property value.

Calculate Your Tax Impact

Why is the district utilizing a phased approach to the operating levy?
The phased approach provides tax stability for residents, something district officials have heard repeatedly is important to taxpayers. For the first two years, the district will utilize a small operating levy and draw down funding from the fund balance (cash reserve), then increase the operating levy to correspond with planned decreases in the existing debt component of school levies.

In tax year 2028, the district will restructure existing debt, extending final payments from 2031 to 2036. While this adjustment will result in a one-time additional interest cost, it enables the district to increase needed operating revenue and complete critical facility projects without a significant tax increase. 

The district has a strong record of good financial stewardship, having saved taxpayers over $20 million through previous debt refinancing efforts.

On November 4, 2025, voters will see two questions on the ballot. Both are focused on what matters most, our children, and are built around four key pillars: Safety and Security, Technology, Maintenance, and Academics. These proposals reflect the voice of our community, align with our strategic plan, and represent a conservative, fiscally responsible, forward-thinking response to the district’s most urgent needs.

• Question 1 is for an operating levy, which would provide funding for day-to-day expenses such as teacher and staff salaries, directly impacting class sizes and educational quality.
• Question 2 is a bond referendum that would fund needed facility and infrastructure projects aligned with the four pillars.

Please note: Question 2 can only pass if Question 1 is approved.
 

We chose to place two separate questions on the ballot to maximize revenue while minimizing the tax impact on our community. While we could have included all proposed projects under one operating levy, doing so would have excluded the district from receiving any state aid, as STMA does not qualify for state aid for an operating levy.

By separating the proposals into an operating levy (Question 1) and a bond referendum (Question 2), we are able to capture state aid on the bond, reducing the overall financial burden on local taxpayers. Additionally, this approach provides voters with a choice in how they wish to support our schools.

The ballot will include two separate questions, one for the operating levy (Question 1) and one for the bond (Question 2). School district ballot language is determined by state statute, giving districts minimal flexibility in how the questions are worded. Question 1 must be approved in order for Question 2 to be considered. While the required legal language may be technical, the graphic below provides a simplified explanation to help voters clearly understand what each question means.

Yes. On July 14, 2025, the STMA School Board unanimously approved placing a combined operating levy and bond question on the ballot. Voters will decide on the proposal through a two-question referendum on Tuesday, November 4, 2025.

All district residents will vote at a single polling location: STMA Middle School West, with polls open from 7:00 a.m. to 8:00 p.m.

Yes. Registered Minnesota voters can vote early either by mail (absentee ballot) or in person before Election Day. Early voting begins on September 19, 2025, and runs through November 3, 2025.

To learn more or request an absentee ballot, visit the Minnesota Secretary of State’s website.

Question 1 proposes a phased increase in the district’s operating levy: $275 per student for the first two years and $835 per student for the following eight years. If approved, the levy would be in place for 10 years.

This operating levy would help maintain current class sizes, protect academic programs, and retain high-quality staff, ensuring our students continue to receive the strong education they deserve. It also promotes financial stability while helping to minimize the long-term tax impact on local residents.

This phased approach enables the district to strategically utilize its fund balance, cash reserves set aside to cover salaries and other operational expenses, which has been carefully built over time. In the first two years, the district pairs this reserve with a smaller operating levy amount. Beginning in year three, the levy increases to $835 per student, aligning with reductions in district debt payments. While $835 per student is needed now, drawing down the fund balance in the early years helps minimize the immediate tax impact. This creative, forward-thinking structure allows the district to maintain stable tax impacts for residents while preserving essential programs and services and avoiding long-term budget reductions.

Question 2 asks voters to approve $21 million in bond funding to address critical needs in safety and security, technology, building maintenance, and academic spaces across all schools. These projects have been delayed for years due to ongoing funding challenges and are not optional enhancements; they are essential improvements that directly affect student learning, safety, and the long-term functionality of our facilities.

Without bond funding, these costs would need to be covered by the general fund, diverting resources away from classroom instruction and student support. This bond allows us to protect educational quality while responsibly investing in the future of our schools.
 

The bond includes projects that have been postponed for years due to ongoing funding challenges. These are not new or optional “wants”; they are essential needs that directly impact the safety, learning environment, and long-term infrastructure of our schools. Just like our own homes, we need to perform regular maintenance and upkeep to protect our investment and ensure our schools remain safe and operate efficiently. Without bond funding, addressing these needs would require using general fund dollars, which would divert critical resources away from classroom instruction and student support. This bond allows the district to responsibly invest in necessary improvements while preserving funding for teaching and learning.

Scroll through the images below to see what is being proposed at each building.

Safety & Security – $4.3 Million 

Why: The safety of our students, staff, and community is a top priority. As best practices in school safety evolve and our facilities age, our facilities must be updated to meet modern standards. These improvements are essential, not only for physical security but also for fostering trust, confidence, and well-being across our community. A proactive approach ensures a secure and safe environment where students can thrive.

Key Projects:

• Activity Center Security Doors: Installation of secure doors to separate sporting events from school academic spaces, controlling access during events, and minimizing disruption during the school day.
• Playground Surfaces: Replacement of surfaces with ADA-compliant rubber surfacing at Albertville Primary, Big Woods Elementary, Fieldstone Elementary, St. Michael Elementary, and Community Education playgrounds. This reduces injuries, prevents slips, and ensures accessibility for all children.
• Phones, Paging & Bell Systems: Upgrades to communication systems to improve emergency response, coordination, and real-time alerts throughout all buildings.
• Updated Fire Panels: Modernized fire detection panels at Big Woods, Fieldstone, and the high school to improve emergency preparedness and evacuation efficiency.
• Additional Security Cameras: Replace broken and outdated security cameras district-wide to enhance surveillance, deter incidents, and support real-time monitoring for increased safety.

Technology – $5.7 Million 

Why: Our current technology is outdated and in urgent need of replacement. Critical classroom tools and districtwide infrastructure are no longer reliable, disrupting learning and daily operations. While we’ve stretched our existing systems as far as possible, further delays are not feasible. Investing in modern technology is essential to ensure high-quality instruction, support innovative teaching and learning, and maintain secure, efficient systems.

Key Projects:

• Infrastructure Upgrades: Improve network reliability and reduce downtime across all buildings, ensuring consistent access to online resources and instructional tools.
• Classroom Boards & Audio Systems: Replace outdated analog systems with interactive digital boards and enhanced audio systems, improving engagement and ensuring all students can clearly hear instruction.
• Auditorium & Gym AV Systems: Upgrade audiovisual equipment, including hearing assistive technology, to enhance performances, presentations, and assemblies. These updates improve accessibility, align with ADA standards, and increase the functionality of these spaces for school and community use.
• Boardroom Streaming & Recording: Enhance transparency and community engagement by upgrading equipment to stream and record school board meetings, allowing stakeholders to stay informed and connected.

Maintenance– $2.8 Million 

Why: Many maintenance projects have been deferred for years due to funding challenges, as we prioritized classroom resources to directly support students and staff. However, continued delays are no longer sustainable. Investing in maintenance now is critical to ensure our buildings remain safe, functional, and efficient, providing well-maintained learning environments for years to come.

Key Projects:

• Activity Center Equipment & Flooring: Replace outdated equipment to enhance safety, align with current physical education standards, and support both student and community use.
• Baseball & Softball Infield Turf and Lighting: Install synthetic turf and field lighting to improve safety, reduce maintenance, increase usability, and expand access for student-athletes and community events.
• Flexible Music & Theatre Space (Black Box Theater): Renovate existing space to support band, choir, theater, and small performances. This multi-use fine arts area promotes student creativity and community engagement, and offers a potential revenue source through rentals.

Academics – $8.2 Million 

Why: Investing in academic spaces ensures students are equipped with the skills they need for the future. The proposed projects promote critical thinking, creativity, collaboration, and real-world problem-solving, all essential for success in today’s world. These updates reflect our commitment to providing high-quality, future-ready learning environments for all students.

Key Projects:

• K-12 STEM Center: An addition to the high school serving grades K-12, featuring a high-tech lab, manufacturing lab, and robotics practice space. This center supports STEM education, robotics classes, and competitions, while also offering rental opportunities for community use.
• High School Media Center & Conference Rooms: Transform the current media center into a modern, flexible learning hub with open spaces and dedicated conference rooms for collaboration, group projects, and interdisciplinary learning. Conference rooms will also support meeting spaces for students, staff, and the community.
• St. Michael Elementary Media Center: Replace outdated shelving with modern, accessible furniture and update the circulation desk to improve organization, safety, and functionality. These updates create a more welcoming space and ensure consistency with other elementary schools in the district.
   

The proposed bond includes investments across four main areas:

• Safety & Security
• Technology
• Maintenance
• Academics

The total investment is $21 million. To ensure full transparency, we have created a detailed spreadsheet that shows the costs broken down by each category.

Yes. On July 14, 2025, the STMA School Board unanimously approved placing a combined operating levy and bond question on the ballot. Voters will decide on the proposal through a two-question referendum on Tuesday, November 4, 2025.

All district residents will vote at a single polling location: STMA Middle School West, with polls open from 7:00 a.m. to 8:00 p.m.
 

Yes. Registered Minnesota voters can vote early either by mail (absentee ballot) or in person before Election Day. Early voting begins on September 19, 2025, and runs through November 3, 2025.

To learn more or request an absentee ballot, visit the Minnesota Secretary of State’s website.