Capital Project Levy 2026

Strong Schools. Strong Communities.

Strong public schools benefit everyone—not just families with children in our schools. They help strengthen neighborhoods, support local businesses, prepare future workers, and make our community a great place to live.

Over the past two years, School District 197 has cut more than $3.2 million from our budget while working hard to protect classrooms and student learning.

We've reached a point where there are fewer places left to cut without it being felt in the classroom. Without additional funding, the district will need to make another $2 million to $4 million in budget cuts in the next year. Those cuts will include staff reductions, larger class sizes, reduced student programming, reduced transportation services, and more.

This November, voters will decide whether to approve a capital project levy to help reduce the need for future budget cuts and keep our schools strong for students and the entire community.

Election Day

November 3, 2026*
7 a.m. - 8 p.m.
*Early voting begins September 18

Estimated Tax Impact

About $14/month*
for a $400,000 home
*Equivalent to ~$168/year

Annual Levy Amount

$4.6 million to our schools each year

Why it Matters

Avoid additional budget cuts; maintain programs and classroom support.

Why a Levy is Needed: Decades of Underfunding

State funding has not kept pace with inflation for two decades. Had the general education formula tracked inflation, School District 197 would have received about $7.7 million more last year alone. You can see the impact of this funding gap in the graph below.

General Education Formula Allowance, 2003-2027

The Result: An Ongoing Funding Gap

As a result, the district's costs continue to grow faster than available funding. Our expenses increase by about 3% each year, while revenue grows by only about 1%, creating an ongoing funding gap of approximately $2 million annually. Without additional funding, that gap continues to grow every year.

Several of the district's largest expenses—including special education, transportation, utilities and employee health insurance—continue to increase each year, and many are required by law or are essential to operating our schools.

This challenge is not unique to School District 197. Twin Cities metro school districts collectively face a projected $223 million budget shortfall for the 2026-27 school year.

What is a Capital Project Levy?

A capital project levy is a funding option available to Minnesota school districts with voter approval. Despite its name, it would not pay for new schools or major construction. Instead, it would help pay for existing expenses like teaching materials, school safety, utilities and transportation—helping reduce the need for future budget cuts.

What We've Done and What's Next: A Community Choice

Before asking voters to consider additional local funding, we looked at our own budget and made the following adjustments:

Cut $3.2 million from our budget over the past two years.
$2.55 million of that was for 2026-27 alone: $1.73 million from positions, $825,000 from everything else. Nearly all of it permanent structural change, not one-time patches.
We continue to run lean on administration—roughly one-third less than the state average per student.
We maintained class-size parameters. That was deliberate, and it was the constraint we protected hardest.

Now, voters will decide whether the district balances its budget through another $2 million to $4 million in cuts or through a capital project levy that would help maintain current programs and services without the need for additional cuts in the coming years.

Potential Outcomes

If the Levy is Approved

Approximately $4.6 million would be available each year to help pay for existing expenses like textbooks, school safety, utilities and transportation.
Helps reduce the need for future budget cuts.
Helps maintain current classroom sizes, supports, programs and services.
Helps rebuild the district's fund balance to policy levels.
Gives the district more time to advocate for long-term improvements to state education funding.

If the Levy is Not Approved

Another $2 million to $4 million in budget reductions would likely be needed to the 2027-2028 budget.
Those reductions could include:
- Staff reductions
- Larger class sizes, higher caseloads for educators
- Reduced student programming
- Reduced transportation services, and more
The district will continue to operate with a balanced budget and advocate for increased state education funding.

Property Tax Impact

Estimated Tax Impact: $14/month

The estimated tax impact would be about $14 per month for the average-priced home in School District 197. Property tax impacts vary based on the home's estimated market value. Only property owners in School District 197 boundaries directly pay these levies.

Calculate Your Tax Impact

Annual Levy Amount: $4.6 Million

If approved by voters, the proposed capital project levy would provide approximately $4.6 million to School District 197 schools each year for 10 years, beginning with taxes payable in 2027 and supporting the 2027–28 school year.

The amount was reduced from $5 million based on community feedback, lowering the estimated cost to about $14 per month for the owner of a $400,000 home.

School Property Tax Comparison

For a home value of $400,000 (the average home value in our school district), School District 197 has lower total school property taxes than almost all districts in the Twin Cities. Of the 47 school districts in the metro area, School District 197 ranks #40 in total school property taxes—the seventh lowest tax rate. See the tax rate comparison of all 47 AMSD (Association of Metro School District) here.

When you look closer to home, we have the lowest tax rate among our neighboring districts.

If the levy is approved, our school district taxes will still be at or near the lowest in our neighborhood and the metro area.

Election Information

On November 3, you’ll see three school board seats, our levy question, and the statewide Permanent School Fund amendment.

Election Day: Tuesday, November 3, 2026
Polls are open from 7:00 a.m. to 8:00 p.m.
Absentee and early voting begins September 18, 2026

For more information about absentee and early voting, voting locations, sample ballots, and more, visit the School District 197 election Information webpage.

Community Information Meetings

Join us for an in-person community information session with Superintendent Peter Olson-Skog to learn about the proposed capital project levy and ask questions.

September 16, 8-10 a.m., District Office, 1897 Delaware Ave., Mendota Heights
September 30, 4-6 p.m., District Office, 1897 Delaware Ave., Mendota Heights
October 29, 5-7 p.m., Thompson Park Activity Center Lodge, 1200 Stassen Lane, West St. Paul

FAQs

Why is the district asking voters to vote on a capital project levy?

School District 197 is asking voters to consider a capital project levy because the cost of operating schools is outpacing available revenue. The district projects approximately 1% annual revenue growth and 3% annual cost increases, resulting in an ongoing 2% funding gap—about $2 million each year. The district has already reduced spending by more than $3.2 million over the past two years while working to protect classrooms. If approved, the capital project levy would allow the district to pay certain existing expenses from a separate funding source, reducing pressure on the general operating budget, reducing the need for future budget cuts, and continuing to rebuild the district's fund balance.

How much will it cost residents if the capital project levy were to pass?

If approved by voters, the estimated tax impact would be about $14 per month for the owner of a $400,000 home, which is the average home value in School District 197. The actual tax impact will vary based on your home's estimated market value. Because the levy is funded through property taxes, there would be no direct tax impact on renters.

Calculate Your Tax Impact

Where and when will I vote on this request?

Voters in School District 197 will be asked to go to the polls on Tuesday, November 3, 2026, to elect three school board members and vote on a capital project levy. Absentee and early voting begins on September 18, 2026. Any voter may vote by absentee ballot—you do not need a reason. You do not need to be registered to vote to apply for an absentee ballot.

For more information about absentee and early voting, voting locations, sample ballots, and more, visit the School District 197 election Information webpage.

Election Information

Why are levies important?

Levies are one of the few ways Minnesota communities can provide additional funding for their local schools. While the state provides most education funding, it often does not keep pace with the rising costs of operating schools. Voter-approved levies help districts fill the education funding gap to maintain strong schools and support students. Today, more than 90% of Minnesota school districts—including School District 197—receive voter-approved levy funding to support their schools.

How long would the levy last?

Is the district balancing its budget?

Didn’t the state just allow the district to transfer money to its general fund?

Yes—about $4.5 million, but it was not new money. Not a dollar of it came from outside the district. Those funds were already ours, left over from a completed HVAC project and sitting in our construction fund, where state law said they had to stay. Recent legislation let us move them into the general fund. Our total fund balance did not go up by a penny—what changed is which pocket it sits in, and our construction fund is that much lighter for it.

It was also one-time. It is roughly what this levy would generate in a single year, and then it is spent. Against a gap of about $2 million every year, it buys us somewhere in the range of two years—and that is exactly what we have used it for: time to plan carefully instead of cutting in a panic, and time to come ask our community for direction.

What is the district’s general fund?

What is the Permanent School Fund constitutional amendment on the November ballot?

This November, Minnesota voters will decide whether to amend the state constitution to modernize how revenue is distributed from the Permanent School Fund, a permanent education trust established in 1858 that supports all Minnesota public school districts. Built from proceeds generated by state trust lands and natural resources, the fund has supported public education for more than 165 years. While you'll likely hear a lot about this constitutional amendment in the coming months, it's important to understand the size of the proposed change. If approved, the annual distribution from the fund would increase by approximately 0.2 percentage points under the updated distribution formula. The amendment would not create a new funding source, raise existing taxes, or cost Minnesotans more money. Instead, it would update the distribution formula to better reflect modern endowment practices while protecting the fund's long-term health and providing more predictable funding for public schools. Because this is a constitutional amendment, leaving the question blank on your ballot has the same effect as voting "No."

The official ballot language will be: “Shall the Minnesota Constitution be amended to increase the funding going to all school districts from the permanent school fund, which is a fund that supports school districts without raising individual income or property taxes, effective July 1, 2027?”

Learn About Permanent School Fund Amendment

Does the district need extra funding if the Permanent School Fund constitutional amendment passes?

Yes. If the Permanent School Fund constitutional amendment passes, School District 197 will receive about 0.2% extra each year from the fund. While we will be grateful for the additional funding should the constitutional amendment pass, it is not enough to close the funding gap that happens every year in School District 197. The $4.6 million from the capital project levy, in addition to funding from the Permanent School Fund, would help reduce pressure on the general operating budget, reduce the need for future budget cuts, and continue rebuilding the district's fund balance.

What is a fund balance?

How do I know the money goes where you say?

Who decides how levy dollars are used?

I don’t have kids enrolled in the district, why does this matter to me?

Strong public schools benefit everyone—not just families with children in our schools. They help strengthen neighborhoods, support the local economy, prepare tomorrow's workforce and create communities where people want to live. In our most recent community survey, 91% of respondents said School District 197 is a good value to the community—a number that includes plenty of people without children enrolled.

What Positions Were Cut This School Year?

On the operations side, positions in human resources, finance, communications, technology, plus buildings and grounds, receiving, and two transportation mechanics.

In schools, media and library support was reduced at every elementary building, instructional coaching was cut in half at two elementary schools, gifted and talented staffing and coordination reduced, and a security position at the high school was eliminated.

Email your question to levy@isd197.org
Attend a community meeting
- September 16, 8-10 a.m., District Office, 1897 Delaware Ave., Mendota Heights
- September 30, 4-6 p.m., District Office, 1897 Delaware Ave., Mendota Heights
- October 29, 5-7 p.m., Thompson Park Activity Center Lodge, 1200 Stassen Lane, West St. Paul