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2026 Operating Referendum

Graphic detailing the tax impact of an operating levy, showing $11 per month on a home valued at $275,000.

VOTER INFORMATION

Pathways to Fiscal Stability

After a detailed process of assessing and discussing the challenges facing the district, the Brainerd Public Schools Board has scheduled an operating levy election for Tuesday, November 3, 2026, to be included on the general election ballot. The ballot question will ask district residents to consider an operating levy that will provide the district with $5 million each year for the next 10 years. 

 

And here’s the most important thing to remember about the operating levy: 100% of the revenue generated from the operating levy will go directly to help our students. The funds will be focused on two areas: Improving student safety and well-being and increasing student achievement.

 

The operating levy request is part of the district’s overall Project True North efforts to improve academic results for each student and stabilize district finances, both short- and long-term. We are not just asking for more money - we are reducing expenses throughout the district so more funds can be allocated to improving student learning.

Financial stability is a need, not a want.

Like many districts across the state, our district’s enrollment has declined and is projected to continue declining for at least the next five years. State funding has not kept pace, and underfunded legislative mandates have increased district spending on special education and other areas. We are at a crucial point and need to increase our revenue to cover increasing costs and to effectively right-size and focus resources on meeting the needs of our students.

 

Kids will feel and see the investment from the operating levy.

100% of the revenue generated from the operating levy will go directly to help our students. The funds will be focused on two areas: Improving student safety and well-being and increasing student achievement. We will add counselors and other staff to support students to help them find success inside and outside of the classroom. The district will invest in lower class sizes, K-6 math and reading instruction, and college and career readiness opportunities for every 7-12 student.

A group of students, some in blue shirts, high-five each other on a sidewalk.

A woman in an apron guides children working with clay at a table.

Past budget cuts have impacted our students.

The district has needed to reduce its budget for the past several years, and the impact is seen in our classrooms. Class sizes have increased, making it more difficult for teachers to meet each student's needs. Support for students from counselors and mental health staff is not readily available, and many programs focused on improving student learning have disappeared. Budget cuts have made it much more difficult for our students.

 

There are three pathways to our success.

Without intervention, BPS faces a cumulative three-year deficit approaching $15 million. No single action — cuts, levy, or efficiencies — closes this gap alone. The operating levy is one pathway that would help close the district’s financial gap. The district is considering consolidating elementary school buildings to align with current and projected enrollment. These two pathways lead us to the third pathway of allowing for additional investment in student academic success.

The levy cost for residents has been reduced.

The tax impact of the operating levy would be about $11 per month on a home valued at $375,000. The tax impact was reduced due to the Seasonal Tax Base Replacement Aid recently approved by the Minnesota Legislature. This legislation will send a portion of the property taxes on seasonal/recreational property directly to the district to help pay for the operating levy. The district can only receive these funds if it has an operating levy in place.

A smiling graduate in a blue cap and gown holds a diploma against a cloudy sky.

If the operating levy is not approved.

In addition to the possibility of closing an elementary school, it is likely that at least one more school and/or district facility would need to be closed and consolidated. The district would also have some tough choices to make as it would be necessary to increase class sizes, reduce teaching and other positions, and reduce or eliminate programs for students. Without the additional funding provided by the operating levy, further budget reductions are inevitable.

November ballot to include Constitutional Amendment for Minnesota schools

 

November 3 election ballots across Minnesota will include a Constitutional Amendment that would increase funding for all schools from the state’s Permanent School Fund. The amendment is separate and different from the operating levy Brainerd Public School is proposing.

 

The Permanent School Fund already exists and has been in place since 1858 when Minnesota became a state. At that time, the federal government granted millions of acres of land to Minnesota for the benefit of public schools. By about 1900, many of the original acres in southern Minnesota had already been sold, so the state shifted its policy to preserving the remaining land for the long-term benefit of students

 

Currently, the fund can only distribute the interest and dividends it earns, which is about 2 to 2.5% annually. Under the amendment, the fund could distribute based on the full market value of its investments, increasing to 4.5% annually. While the fund's value has increased significantly, the way funds are distributed has never changed. In 2010, the Permanent School Fund’s balance was about $675 million. By 2025, it had increased to about $2.3 billion.

Here are a few more important facts to know about the Permanent School Fund:

  • The amendment does not raise taxes - the amendment updates how the fund distributes money to schools.
  • The amendment does not solve funding gaps faced by Brainerd Public Schools and many other Minnesota districts. 
  • The Permanent School Fund will continue - only the annual distribution amount will be changed.

 

Referendum Quick Facts

  • Infographic showing 76% of Minnesota school districts have voter-approved authority, while Brainerd does not.
  • Infographic showing a downward trend in student enrollment with a projected loss of 650 students and $6.5 million in revenue.
  • Graphic shows a heart with a cross inside, held by a hand, with text stating special education costs increased 20.8%.
  • Icon representing a classroom with students, next to text about class sizes.
  • Graphic with text explaining the Seasonal Tax Base Replacement Aid.
  • Infographic showing a downward trending bar graph and a graduation cap, with text detailing a 41.1% smaller kindergarten class and projected revenue loss.

Frequently Asked Questions

  • Operating levies are locally approved funds that help support school district operating costs, including staff salaries and benefits, curriculum, and classroom supplies. Operating levies are not used for building construction or renovation. Bond referendums are used to generate funds for building needs.

  • If the operating levy is not approved, the following reductions will be considered and/or implemented to balance the district’s budget

    • Increase class sizes by reducing teaching positions
    • Reduce district and school staff positions
    • Eliminate programs and services for students

  • If the operating levy is approved, funds will first be available to the district for the 2027-2028 school year and be in place for the next 10 years.

  • 100% of the funds from the operating levy will go directly to help our students. Funds from the operating levy, along with resources from budget reductions and savings in other areas, will be focused on improving student learning. With these additional funds, the district would invest in lower class sizes, K-6 math and reading instruction, and college and career readiness opportunities for every 7-12 student.

  • A pie chart titled '2020-21 Original Budget by Revenue Source' shows state revenue as the largest portion.

  • Pie chart showing 2026-27 budget expenditures with various categories.

  • The 2026-2027 district budget shows that administration salaries and benefits will account for about 3.5% of the annual budget.

  • Brainerd Public Schools


    Fiscal Year 2027 (School Year 2026-27) — Original Budget

    Fund Beginning Balance Revenue Expenditure Excess (Deficit) Ending Balance
    General Fund $21,783,758 $98,130,193 $101,462,690 ($3,332,497) $18,451,261
    Food Service Fund $817,784 $4,745,500 $5,146,107 ($400,607) $417,177
    Community Service Fund $1,800,108 $3,961,530 $4,334,964 ($373,434) $1,426,674
    Building Construction Fund $1,565,062 $50,000 $800,800 ($750,800) $814,262
    Debt Service Fund $10,678,294 $16,146,351 $18,579,369 ($2,433,018) $8,245,276
    OPEB Trust Fund $13,297,649 $1,000,000 $2,571,187 ($1,571,187) $11,726,462
    OPEB Debt Service Fund $677,662 $26,050 $0 $26,050 $703,712
    Total All Funds $50,620,317 $124,059,624 $132,895,117 ($8,835,493) $41,784,824