By Lori Ehde
Luverne School Board members set the district's preliminary levy during their Thursday, Sept. 26, meeting.
The good news for local taxpayers is that it will decrease by nearly 24 percent for taxes payable in 2003.
Last year, the district levied roughly $2,042,480 for taxes paid this year. On Thursday, the board set the preliminary at the maximum allowed by the state, which comes to $1,554,317.
While the lighter burden for local property taxpayers is good news, the bad news is that the current state funding source for education is seen by most districts as unstable.
The Legislature and Gov. Ventura approved switching general education funding from a combination of state aid and local levy to state aid.
That state aid is generated primarily from sales and income tax.
In a strong economic climate, this works well, but if the economy sours, and those funding sources decrease, state education funding risks cuts.
With limited local levy options, this makes district financial officials feel vulnerable, according to Luverne District Finance Officer Marlene Mann.
"We're dependent on the state. If they have a deficit they may reduce the amount we recieve," she said. "If the state cuts funding after we're into our budget year ... it creates a lot of uncertainty."
The state funding shift is one reason for the decreased Luverne District levy, but another, Mann said, is that two years ago the district approved a two-year health and safety levy for improvements such as the heating-cooling system in the middle school and high school building.
Last year, district taxpayers covered $827,000 of that levy. This year, their bill comes to $276,000. ThatÕs a difference of more than $550,000 on this yearÕs tax statements compared with last year's.
Districts are required to set preliminary levies in September, but the actual district levy will be certified in December. It can be decreased before then, but it cannot increase.
Student discipline
In a closed portion of Thursday's meeting, board members considered the expulsion of two ninth-grade students.
The students were suspended in late September after a minor incident involving matches and paper towels, according to district attorney Don Klosterbuer.
After considerable discussion, the board agreed the students could return to regular classes on the condition they each perform 65 hours of community service work.
That work will be performed in the form of assisting district janitorial staff.