FAQs

Q. Didn’t you receive money at the state legislature? Why do you need more?

A. The State of MN made important new investments in preK-12 schools during the recent legislative session, but those investments only helped Cedar Mountain and other school districts partly catch up from more than a decade of funding schools lower than the rate of inflation. Schools received an increase of 4% for 2023-24 and 2% for 2024-25 on the general education school funding formula and received some relief from the long-standing underfunding of mandated services in special education and multilingual learning, which forced districts to spend general funds to make up the difference. These new revenues, while helpful, are not sufficient to fully fund these and other State and Federal mandates, to make up for decades where funding did not keep pace with inflation, or to make up for the recent period of high inflation, tight job markets, and other pandemic impacts. Those investments were welcome but won't enable Cedar Mountain to help all students compete and thrive in a changing world.

Consequences of election results

Q. What happens if the referendum is approved?

A. Needed updates will be made to the schools, setting them up for many years of future use, annual operating costs will be saved, leaving more dollars for teachers and programs, and staff will be retained (who might have been lured to districts with better facilities).

Q. What happens if the referendum is not approved?

A. Facilities challenges will not go away; excessive repair costs for some items could come from the general fund, reducing funds available for teachers and programs; and the school district would consider another referendum, with an increased cost, due to inflation.

Tax-related questions

Q: What is the difference between an operating levy and a building bond referendum?

A: Levies are for learning, bonds are for building. When communities support an operating levy, they are providing the district general funds to use for teachers’ salaries, textbooks, co-curricular programs, transportation, computers, utilities and the general operation of the district.

On the other hand, a bond referendum provides districts dollars to make improvements to facilities and building infrastructure only. For example, bonds can be used for major construction such as renovation, building an addition, building new schools or for general building projects such as addressing deferred maintenance and ventilation deficiencies. Bonds, however, cannot be used to hire teachers, buy textbooks, or for the operation of the district such as utilities.

Q. Can I deduct the taxes paid on my State and Federal Income Taxes?

A. If you itemize deductions for federal income taxes, you may deduct all property taxes paid.

Q. Does farm property receive some tax relief?

A. Yes, for decades, farm families paid school operating levies on 1 acre of property that included the house, but paid school bond levies on all property. In 2017, the Minnesota Legislature approved a 40 percent tax credit for farm land school bond taxes. In 2019, the legislature approved higher tax credits to be phased in over time… with a cap of 70 percent in 2023 and thereafter.

In Cedar Mountain, the proposed bond project will receive aid from the School Building Bond Agricultural Tax Credit. This credit provides agricultural property owners a credit for school district debt service. This is an automatic reduction of property taxes paid. For this referendum, the State of Minnesota will pay for approximately $9.6 million of the bond amount because of the School Building Bond Agricultural Tax Credit for agricultural property.

Value of schools in community

Q. How do schools impact the community?

A: According to the National Bureau of Economic Research, there is a definite correlation between school expenditures and home values in any given neighborhood. A report titled, “Using Market Valuation to Assess Public School Spending,” found that for every dollar spent on public schools in a community, home values increased $20. These findings indicate that additional school expenditures may benefit everyone in the community, whether or not those residents actually have children in the local public school system.

Q: Does increasing funding for schools have any effect on academic outcomes?

A: The most rigorous research shows that, as scholars C. Kirabo Jacson and Claudia Persico put it, “there is a strong causal relationship between increased school spending and student achievement.” To read the scholar’s review of that research, please visit https://onlinelibrary.wiley.com/doi/epdf/10.1002/pam.22520. 

Q: I don't have kids in school. Why should I care about this?

A: Strong schools help support a strong and vibrant community. Local community and business leaders are active in our schools and will help guide future decisions.

Fiscal responsibility

Q. Is the District Financially Responsible? 

A. We believe we are. The district has maintained its buildings and proposes to update current sites, rather than construct new buildings, like our neighboring districts have done at a higher cost for taxpayers.

Additionally, the proposal will benefit the general fund. The utilities and maintenance savings from upgrading to more efficient mechanical systems will be about $30,000 per year. Also, the project will qualify for a direct pay tax credit of up to $2.3M to the general fund to support school programs.

Bond referendum proposes a cost-effective investment in Morgan and Franklin schools; allowing us to continue investing in and preserving the schools in each of our two communities. It maintains existing facilities (a cost-effective approach) vs. new construction (an expensive approach taken by neighboring districts) and shows responsible facility management and financial stewardship.

Referendum Timing

Q: Why is this an urgent need?

A: Student learning is impacted by failing school infrastructure. Repair and maintenance costs are significantly higher than other school districts due to the age of equipment and facilities. The costs divert resources from the general fund and classroom learning. Boiler breakdowns at the elementary school have required multiple urgent repairs throughout the year. Roofs cannot be insured as they are past their lifespans.

Q: How is this different from the previous two referendums?

A: This work will finish what was begun with the last two referendums. Renovations were made at Franklin Campus (elementary school) 20 years ago, and Cedar Mountain Middle/High School Campus (Morgan) 10 years ago. Revenue from this bond referendum would be distributed to both locations.

Q: Why can't you continue to use long-term maintenance funds or another revenue source for facility work?

A: Cedar Mountain School District has significant facility needs, including equipment that is past its useful life and needs replacement. The district receives Long-term Facilities Maintenance Revenue (LTFMR) from the state, however, there are far more needs than LTFMR funds available. The district receives $00000 LTFMR annually and over half of this budget is committed to current facility projects.

Voting Information

Q: How and where can I vote for the referendum? 

Minnesota offers three ways to vote - early in person, by mail, or on election day. 

• You can vote early in-person beginning March 28 at the District Office (310 Somerville, Morgan, MN 56266) or with an absentee ballot. If you are not registered, you can do so in person if you show proof of residence.

• To vote by mail, apply to have an absentee ballot mailed to you. You do not need to be registered to apply. Visit the Minnesota Secretary of State’s Office website for instructions and a downloadable application. Allow plenty of time for mailing, as your returned ballot must be received by Election Day, May 13.

• To vote on Election Day, May 13, you must go to your assigned polling place between 3:00 p.m. to 8:00 p.m. 

• The combined polling places for this election and the precincts served by the combined polling places will be as follows:

• COMBINED POLLING PLACE:
  Morgan Lions Community Building, 115 Vernon Avenue, Morgan, MN  56266

• This combined polling place serves all territory in Independent School District No. 2754 located in the City of Morgan; and Brookville, Morgan, Paxton, Sherman, Sundown and Three Lakes Townships, Redwood County, Minnesota; and Eden and Prairieville Townships, Brown County, Minnesota.

• COMBINED POLLING PLACE:
  Franklin Community Center, 221 E. 2nd Ave. E., Franklin, MN  55333

• This combined polling place serves all territory in Independent School District No. 2754 located in the City of Franklin; and Bandon, Birch Cooley, Camp and Norfolk Townships; Renville County, Minnesota.

• Any eligible voter residing in the School District may vote at said election at the combined polling place designated above for the precinct in which he or she resides.  

• A voter must be registered to vote to be eligible to vote in this election.  An unregistered individual may register to vote at the combined polling place designated above for the precinct in which he or she resides on election day.

If you need to register to vote on Election Day, you’ll have to bring some things with you. This flyer explains.