2025 Operating Levy

On June 23, the school board unanimously approved placing a two-question operating levy on the November 4 election ballot. 

If the levy is approved by the voters, the school district will: 

• continue to provide similar levels of services moving forward.

If the levy is not approved by the voters, the school district will:

• need to make budget cuts to programming, services, and staffing; which will result in larger class sizes. 

Regardless of whether the levy passes (one or both questions), the district will make $3.5 million in budget cuts for the 2026-27 and 2027-28 school years.

Additional responses to budget cut questions that have been raised by citizens are noted below:

• If our district were to make $11 million in budget cuts in a proportional manner, how many teaching positions will be eliminated?  70-80 teaching positions. NOTE: Teacher salaries and benefits make up 60% of operating expenditures 
• What is the impact of $11 million in budget cuts on the different categories shown on the table in Superintendent Mike Redmond's presentation to the School Board on October 6, 2025? 11% of services across the district

Projected Budget Deficits:

• $7-9 million for FY27 (2026-27 school year)
• $1-4 million for FY28 (2027-28 school year)
• Outlook for FY29 is concerning

The main reason why Shakopee is facing financial challenges, as are many other school districts in Minnesota, is the State’s primary means of funding schools via the General Education Formula Allowance has fallen short of the rate of inflation over the past four years.

Another reason why Shakopee and many other school districts in Minnesota are facing financial challenges is that State funding has decreased due to declining student enrollments – caused mainly by lower birth rates.

In the simplest of terms, there are three options for addressing the decisions that need to be made for the 2026-27 and 2027-28 school years to address the impending imbalance budgets.

1. Budget cuts
2. Increased revenues
3. A combination of budget cuts and revenues

Shakopee's 11 ‘comparison districts*’ have cut approximately a combined $98.5 million for this school year and next school year (FY25 and FY26). It appears these cuts will continue in FY27 and beyond. 

Shakopee Public Schools budget is balanced in the 2024-25/2025-26 school years. There is a projected: $7-9 million budget deficit in the 2026-27 school year AND an additional $1-4 million deficit in 2027-28.

Shakopee Public Schools will make $3 million in permanent budget cuts in the 2026-27 school year and $500,000 in the 2027-28 school year regardless of whether the operating levy is passed by voters.

Additional permanent budget cut  etails are listed below:

• Reducing Expenditures in 2025-26 School Year
  • Executing Schooley Mitchell cost savings analysis that was presented to the School Board on February 24, 2025.
  • Adjusting teacher staffing due to decreases in enrollment.
  • Not hiring for a position if there is a high probability the position will be eliminated in the 2026-27 school year
    • Ie. Two positions in LTE– saves $250,000 per year
  • Deeper examination of areas for cost savings
    • Ie. (NOTE: Action wasn’t initiated due to cost savings) Replacement of ALICE training with Run, Hide, Fight training saves $16,000 per year

• Reducing Expenditures in 2026-27 School Year
  • Making at least $3M in permanent expenditure reductions
    • Staffing adjustments due to decreases in enrollment 
    • Reducing total quantity of bus routes (no change to walking distances)
    • Reducing expenditures to better align with State provided revenues in specific funding areas
  • Additional cuts?

Oct 6. -  View initial budget cut preparation presentation

An opportunity exists for a tax neutral operating levy. 

• In calendar year 2025, Shakopee Public Schools will be paying $5,160,455 of taxes to pay off a part of the district’s construction debt. 
• If approved by the voters, Question One of the November 4, 2025 operating levy will provide $5,000,052 in new revenue in 2026 to the district.

Stated another way: Taxes paid in 2025 for construction debt = $5,160,455

ARE REPLACED BY

Taxes paid for the additional operating levy in 2026 = $5,000,052 

Note: Construction debt is taxed via Net Tax Capacity. Operating levy is taxed via Referendum Market  Value. Thus, the amount of taxes varies between the two forms of taxes for different property types.

School District Question 1

Approval of New School District Referendum Revenue Authorization 

The board of Independent School District No. 720 (Shakopee Public Schools), Minnesota has proposed to increase the School District’s general education revenue by $620 per pupil, subject to an annual increase at the rate of inflation. The proposed new 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.

Shall the new referendum revenue authorization proposed by the board of Independent School District No. 720 (Shakopee Public Schools), Minnesota be approved? (voters will fill in YES or NO)

Going to the Cap

Beyond the opportunity that exists for a tax neutral operating levy with Question One,  voters are being asked a second question. 

• This second question is asking for an additional $310 per pupil in operating levy on top of the $620 per pupil in operating levy revenue that will be generated should the voters approve the tax neutral first question.  

The additional $310 per pupil would bring Shakopee Public Schools to the cap, or limit, for a school district operating levy. It will provide an additional $2,500,026 in annual operating revenue. 

Question #1 must pass for Question #2 to pass, should it have enough votes. Question #1 can pass independently of Question #2. In other words, if question one fails, question two automatically fails regardless of the vote count. 

School District Question 2

Approval of New School District Referendum Revenue Authorization 

The board of Independent School District No. 720 (Shakopee Public Schools), Minnesota has proposed to increase the School District’s general education revenue by $310 per pupil, subject to an annual increase at the rate of inflation. The proposed new 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. Shall the new referendum revenue authorization proposed by the board of Independent School District No. 720 (Shakopee Public Schools), Minnesota be approved? Voters will fill in Yes or No.

click here to access the tax calculator provided by pTma financial solutions

To get a precise look at the taxes for your own property, taxpayers are encouraged to use the online tax calculator provided by PMA Securities, LLC with property data provided by Scott County. In order to calculate your estimated tax impact, please have your parcel number ready. A parcel number can be obtained on the Scott County website by visiting: bit.ly/FindMyParcel_Shako

As shared above, question one is considered tax neutral. Question two results in roughly $8.71 per month on an average Shakopee household. Full tax tables are included below.

The ballot for Question One will note state that the levy is ‘tax-neutral.’ This is because the calculation for the tax that's expiring and the new tax is different. The old tax, which is for construction debt, is based on a calculation using Net Tax Capacity, which factors in things like tax rate and property class. The proposed new tax, an operating levy, is calculated using Referendum Market Value, which is a simpler measure of a property's value. Since these two methods of calculating taxes are different, the ballot cannot legally state the new levy is tax-neutral, even if total taxes do not change.

Click here to learn more about voting options for the November 4 Special Election.

An operating levy is good for 10 years. 

Bond = Buildings, Levy = Learning & operations

Operating levy dollars pay for educational programs and day-to-day operations of schools, including teachers and staff support.

The 2024 Capital Projects Levy renewal for Shakopee Public Schools was approved by voters in November 2024. Funds from this operating levy may only be used for safety, security and technology related district needs. 

Interested in learning more about the 2025 Operating Levy request? Send an email to levy@shakopee.k12.mn.us or call 952.697.8710 to reach the levy information line. Email and phone inquires will be addressed as soon as possible by the Shakopee Public Schools Elections Team.