The Hastings School Board took another step toward preserving a significant source of district funding during its June 17 meeting, reviewing plans to renew the operating referendum that currently provides approximately $4.2 million annually for school operations.
While no formal action was taken at the meeting, board members received a presentation from Director of Finance and Operations Jennifer Seubert outlining the importance of the referendum and the district's proposed timeline for renewing it under authority granted by the Minnesota Legislature.
The referendum was originally approved by Hastings voters in November 2017 and currently generates $773 per adjusted pupil unit, plus inflation, for the district's general fund. The levy is scheduled to expire after the 2027-28 school year. The annual revenue generated by the referendum is approximately $4.2 million.
Seubert told board members the referendum plays a critical role in supporting the district's daily operations and educational programs.
"The significance of this referendum to the district is huge, as it provides a meaningful portion of our operating budget and supports the day-to-day operations, as well as the educational services that our students receive," she said.
Under a law enacted by the Minnesota Legislature in 2023, school boards may renew an existing operating referendum one time under the same terms originally approved by voters. The law was created after lawmakers observed that districts routinely succeeded in renewing existing operating levies.
Seubert explained that using the board renewal process would preserve existing funding while avoiding the expense and uncertainty of an election.
"It maintains funding that has already been approved by Hastings voters in 2017," she said. "Again, it doesn't increase it, but it does continue what was previously approved by voters."
The renewal authority has already been used by dozens of Minnesota school districts. According to information presented by Seubert, 48 of 51 eligible districts utilized the board renewal process during the 2025-26 cycle.
The presentation prompted questions from board members about the financial impact on taxpayers.
Director Elaine Mikel-Mulder asked what many residents are likely wondering.
"So, this, if we're to renew, which it looks like a majority of boards have done already, this will not increase taxes?" she asked.
"It would not increase taxes," Seubert responded. "It would renew it at the current level that it already is."
Vice Chair Jessica Dressley emphasized that the funding is not new.
"Just for clarity, this was already approved, obviously, by our community when they voted in 2017," Dressley said.
Board members also discussed the growing financial pressures facing public schools and the increasing reliance on local funding sources.
Director Matt Bruns pointed to state-level funding challenges, particularly in special education, and asked Seubert to explain how those issues affect district finances.
"Those costs come no matter what," Bruns said. "We serve students because we give them what they need, especially when they're receiving special education services."
Seubert said referendum dollars help offset the gap created when state or federal governments require districts to provide services without fully funding them.
"There are many times that bills through either the state or the federal government will implement mandates that they'll fund for a year or initially, but then after that it becomes the district's responsibility to fund it through our regular operating budget," she said. "Again, that's where these referendum dollars really help kind of bridge the gap."
Mikel-Mulder praised Seubert for helping board members better understand the district's financial picture.
"Thank you so much for really drilling down into this and helping us understand," she said. "You've been so pivotal in understanding budget."
Mikel-Mulder said a recent board work session reinforced how important local funding has become.
"The one thing that just became really clear is how vital it is that we secure funding from our local community because the Legislature has determined that that's where schools are going to be funded from now on," she said.
Director Mark Zuzek echoed that sentiment, noting that local operating levies have been part of Minnesota's school funding system for decades.
"We had three legislators here last week at our work session, and I asked the question about whether it is clear that the State of Minnesota's Legislature has included public funding at a local level via property tax as part of the funding formula for public schools," Zuzek said.
All three lawmakers agreed, he said.
"This is how Minnesota funds schools," Zuzek said. "This is not unique to Hastings, and it's not unique to this time frame either."
The board's review comes as district officials continue long-range financial planning amid enrollment declines, inflationary pressures and growing state mandates.
According to Seubert, renewing the referendum would provide financial stability while allowing the district to focus on students and programs rather than preparing contingency plans for a potential loss of revenue.
The board is expected to continue discussing the referendum during the coming month. A public hearing is scheduled for the July 15 school board meeting, where residents will have an opportunity to provide feedback before board members consider formal action.
If approved, the renewal would continue the referendum under the same terms originally authorized by voters in 2017, preserving approximately $4.2 million annually for district operations without increasing the current levy.
For district leaders, the issue ultimately comes down to maintaining resources that support students throughout Hastings Public Schools.
"We are recommending that the board use the authority provided by Minnesota statute to secure the long-term funding," Seubert said.