Frequently Asked Questions
Q: How will the referendum funds be spent?
A: The funds will be spent on these three categories:
Q: What is the effect of the operating levy on farms? Do we pay on all our property?
A: No, farm owners pay on the homestead and one acre for operating levies. Farmers pay on all property for bond levies, however farm property taxes on the New Ulm bond levy from the 2014 referendum are going down again in 2023 due to the Ag2School tax credit program. This credit was approved several years ago and was phased in over time from 40% to 60% for taxes payable in 2022 and will be a 70% tax credit for farm owners on the school bond levy in 2023 and beyond. This will be noted on your property tax statement in December.
Q: You say that there won't be a tax increase to property owners, is that correct?
A: Yes, this is an operating levy renewal, so there's no increase. BUT... The proposed operating levy would be indexed to inflation, so the levy increases each year by the rate of inflation (as it has for the past 10 years, with approval from voters). It's a challenging message to communicate - while the number itself increases, the value of the number remains the same, because the buying power of the revenue increased the same amount as our costs. If the levy was not indexed for inflation, the buying power is reduced each year because expenses have increased.
Q: Didn’t the school get additional money from the state/federal government for COVID?
A: Yes, we received funds to pay for:
Q: You say ZERO cost increase but doesn't it increase by the cost of inflation?
Yes. For the past 10-years, the New Ulm operating levy has been indexed to inflation. This means that voters approved the school district to collect more funds each year by the amount of the increase in inflation, typically around 2-3% more each year. While the increase to the taxpayer is not large, it allows the buying power of referendum revenue to remain at the same level as it was in the year it was approved. We’re proposing to maintain an operating levy indexed to inflation for the next 10 years, as well.
Q: How do New Ulm Public Schools benefit private school students?
The most direct benefit for private school students is cooperative agreements that allow students to play on New Ulm athletic teams including gymnastics, tennis, hockey, wrestling, and soccer, along with classes they can take at our high school and Career Technical Education Center. New Ulm Public School also provides the nursing and counseling services for our non-public school students and all of the Special Education services for non-public school students.
But many other benefits to students, families and the community come from a strong partnership among the New Ulm area’s public and private schools. These opportunities make our area a regional hub and contribute to our regional success. Put simply, good schools draw families to move to New Ulm.
Q: I don't have kids in school. Why should I care about this?
Strong schools help support a strong and vibrant community. According to a National Alliance of Business report, "The second most often cited reason for a business selecting a particular location is the quality of the schools. Good schools are also shown to attract and retain families. A community that attracts families and businesses tends to have a stronger tax base, higher home values, and a tax burden that is spread more widely."
A: The funds will be spent on these three categories:
- Maintain low class sizes - 40%
- Maintain current programs for college prep and technical education - 40%
- Provide student technology and infrastructure - 20%
Q: What is the effect of the operating levy on farms? Do we pay on all our property?
A: No, farm owners pay on the homestead and one acre for operating levies. Farmers pay on all property for bond levies, however farm property taxes on the New Ulm bond levy from the 2014 referendum are going down again in 2023 due to the Ag2School tax credit program. This credit was approved several years ago and was phased in over time from 40% to 60% for taxes payable in 2022 and will be a 70% tax credit for farm owners on the school bond levy in 2023 and beyond. This will be noted on your property tax statement in December.
Q: You say that there won't be a tax increase to property owners, is that correct?
A: Yes, this is an operating levy renewal, so there's no increase. BUT... The proposed operating levy would be indexed to inflation, so the levy increases each year by the rate of inflation (as it has for the past 10 years, with approval from voters). It's a challenging message to communicate - while the number itself increases, the value of the number remains the same, because the buying power of the revenue increased the same amount as our costs. If the levy was not indexed for inflation, the buying power is reduced each year because expenses have increased.
Q: Didn’t the school get additional money from the state/federal government for COVID?
A: Yes, we received funds to pay for:
- Additional teachers, custodians, cooks, medical staff
- More bussing for athletics – spreading out students
- Safety equipment and dividers
- Cleaning equipment and supplies
- More air filters to replace with systems full open to move more air
- More food service equipment and supplies to feed in more spots as we spread students out
- Technology for distance learning - systems in classrooms, devices for families and hot spots. Upgrades to technology infrastructure to make it work.
- Additional Summer school programs, bussing and staffing to get to more students.
- Additional school nurse, mental health supports, HVAC system updates,
- Staff to help with learning loss requirements from the state.
- The funds end in two years, we plan to continue with current plans that meet the federal and state requirements.
Q: You say ZERO cost increase but doesn't it increase by the cost of inflation?
Yes. For the past 10-years, the New Ulm operating levy has been indexed to inflation. This means that voters approved the school district to collect more funds each year by the amount of the increase in inflation, typically around 2-3% more each year. While the increase to the taxpayer is not large, it allows the buying power of referendum revenue to remain at the same level as it was in the year it was approved. We’re proposing to maintain an operating levy indexed to inflation for the next 10 years, as well.
Q: How do New Ulm Public Schools benefit private school students?
The most direct benefit for private school students is cooperative agreements that allow students to play on New Ulm athletic teams including gymnastics, tennis, hockey, wrestling, and soccer, along with classes they can take at our high school and Career Technical Education Center. New Ulm Public School also provides the nursing and counseling services for our non-public school students and all of the Special Education services for non-public school students.
But many other benefits to students, families and the community come from a strong partnership among the New Ulm area’s public and private schools. These opportunities make our area a regional hub and contribute to our regional success. Put simply, good schools draw families to move to New Ulm.
Q: I don't have kids in school. Why should I care about this?
Strong schools help support a strong and vibrant community. According to a National Alliance of Business report, "The second most often cited reason for a business selecting a particular location is the quality of the schools. Good schools are also shown to attract and retain families. A community that attracts families and businesses tends to have a stronger tax base, higher home values, and a tax burden that is spread more widely."