FAQs

A: The Byron School District has 5 outstanding bond issues that are all related to the 2014, 2016 and 2021 elections for building projects. The district also has debt outstanding for deferred maintenance projects that were school board approved. Those are borrowed against the annual Long Term Facilities Maintenance (LTFM) revenue stream, and do not cause an additional tax burden for property owners.

On the operating side, the district did cashflow borrow in January to meet expense needs during 2025. However, this is being repaid on 9/30/25, and we do not anticipate a need to borrow during 2026 as we made budget adjustments to address cashflow shortfalls.

A list of outstanding debt obligations is available here. (Note: the schedule for repayment of debt incurred is shown in the bar chart - each of the bond issuances is described in the table above and in this outstanding debt document click here.)

DescriptA: It is true districts face an "uphill climb" in terms of staying fiscally sustainable. There are real concerns at the state and federal level that create uncertainties now and in the future. Funding streams, un- and under-funded mandates, and growing responsibilities for our communities remain real issues for districts. After examining these considerations, the School Board felt comfortable with the levies we are asking for on this referendum. 

One of the main issues raised was the long-term impact of a levy passage. If both questions pass, the district's fund-balance remains above 8% during our 5-year projections. The fund-balance, or savings account, is the primary indicator of a district's fiscal health and sustainability. The 8% represents an ability to cover operational costs for a month with no additional revenue. 

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A: The characteristics of a public school district have an impact on the amount and type of funding available. For instance, a regular education student generates around $7,500 in revenue for a school district. If the student receives English Language Learning (ELL) support, the district receives additional revenue beyond the $7,500 to cover (in part) the cost of additional services. Students that qualify for educational benefits (i.e. come from impoverished homes) generate a different amount of revenue above the $7,500 for a district. Students that qualify for both ELL and educational benefits generate an entirely different amount. 

Additionally, the age of our buildings is a factor in the maintenance revenue we receive; with older buildings, a district receives more support in maintaining the facility. Comparatively speaking, Byron Public Schools has a lower number of students that generate additional revenue (like ELL and educational benefits). Also, most of our buildings are newer, which also limits the amount of maintenance aid we receive. Open-enrolled students generate revenue for the district they attend according to this mentioned framework. Nearly all Minnesota school districts have a greater percentage of their student body that are English language learners or qualify for educational benefits, and most have older facilities than we have in Byron. 

It should be noted that the Byron school district is a net open enrollment winner – more students enroll into the district from other districts than open enroll out. Byron benefits from open-enrolled students attending the district due to the additional revenue received from state and federal sources. This allows us to offer more educational programs than a school district our size would ordinarily be able to offer.

A: The levy term would be for ten (10) years. Regarding moving away from a levy, Byron and other districts would certainly prefer other approaches to stabilizing school resources. On "The Need" page of this website, we highlight a number of issues that are impacting school district budgets. The main culprits are funding from the State and National governments have not kept pace with inflation for more than a decade and un-/under-funded mandates from these governments reduce our district's ability to allocate resources for our needs. 

Historically, Byron's dramatically increasing enrollment year-over-year was providing additional revenue to the district to offset these trends. Also, like many districts, Byron used COVID-era funding to help offset these rising costs. Our district's changing enrollment pattern and the end of COVID funding removes the revenue streams the district was using. The levy amount asked for does stabilize the district's budget for as far out as our projections reach (5 years). 

A. At the current student count of 2,324, revenue from Question 1 would be equivalent of $1.6 million and increases annually at the rate of inflation. Had state funding increased by the rate of inflation each year since 2003, 2025 funding would be nearly $3 million annually.

A. The District would reduce expenditures by at least $600,000 to maintain positive fund balance through 27-28. These cuts could come from:

• Reducing/eliminating intervention programs

• Increasing class sizes K-12

• Reducing elective offerings at the High School and Middle School

• Reducing Technology access at Elementary schools

• Further, the District could face Statutory Operating Debt as soon as the 28-29 School Year

A. The proposed referendum revenue authorization would be first levied in 2025 for taxes payable in 2026 and applicable for ten (10) years unless otherwise revoked or reduced as provided by law. No current school board can obligate a future school board to hold or not hold a referendum or renew a current referendum. We also cannot foresee possible changes to revenue streams from the state and federal government. 

A. State revenue increases don’t keep place with inflation, state mandates are often unfunded or underfunded, declining enrollment, and other budget impacts play a large role. 

In 2023, the state of Minnesota approved a significant increase in revenue for schools, for which we are thankful. Unfortunately, 

1. State revenue increases haven't kept pace with inflation – had state funding increased by the rate of inflation each year since 2003, 2025 funding would be $8,543 per student, $1,262 more than actual – with 2,324 students, that’s the equivalent of nearly $3 million annually, and

2. The state increased the number of unfunded or underfunded mandates in 2023. By some estimates, there were more than 60 new mandates for school districts. Some costly examples:

• Unemployment for hourly staff during summers

• Paid Family Medical Leave

• Employer increase in Teachers Retirement Association contribution

• New curriculum requirements with no funding for curriculum materials and teacher training

Our enrollment numbers have leveled off since 2020 and have even experienced a slight decrease in recent years. This is due to several factors, including lower birth rate, a move during the pandemic by families to homeschool children, and competition from private schools. In previous years we were able to offset cost increases with revenue increases from increased enrollment.

A: No, there are many factors that have led to our current financial situation. Yes, mistakes were made. They were acknowledged by the previous administration and steps were taken to ensure this won't happen again. During the 2023-2024 school year, the district learned that a salary increase for staff was not included in the budget. When we ended the year, we found that expenses were higher than anticipated because of the budgeting error. Since then: 

• The district completed an audit to determine our true financial situation

• We put new reporting standards in place to make errors harder to make and to ensure any errors are caught immediately

• We hired a new, experienced business manager

• We hired a new superintendent

We now know exactly what our financial situation is, and we have a very detailed plan, which includes both becoming more efficient, as well as appropriate allocation of referendum funds, to help us achieve financial stability.

A: The State of Minnesota made important new investments in preK-12 schools during the recent legislative session, but those investments only helped Byron and other school districts partly catch up from more than a decade of funding schools lower than the rate of inflation. Those investments were welcome but won't enable Byron to help all students compete and thrive in a changing world.

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.

A: With an operating levy, the revenue is used for general operation of the district. The revenue from an operating levy cannot be used for building construction or renovation. 

With a capital projects levy, there is a limited set of eligible purposes, including constructing, repairing and improving school buildings, technology and purchasing vehicles. Revenue from a capital projects levy cannot be used for the general operation of the district.

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

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.

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. 

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. We are all dependent upon the outcomes of all schools, and Byron is no exception. We must educate the next generation to sustain our community.