2026 Referendum & School Funding Information

1. What is an operating referendum?

An operating referendum is an election in which voters are asked to approve additional local revenue for the general operating expenses of a school district.

Operating referendum revenue can be used to support the day-to-day operations of the district, including staffing, educational programs, activities and other general operating expenses.

2. What is Sibley East asking voters to approve?

Sibley East is asking voters to approve an operating referendum of $850 per pupil unit for 10 years.

If approved, the referendum would generate approximately $935,000 in additional revenue each year for Sibley East Public Schools.

The $850 amount is a per-pupil-unit authorization for the district. It does not mean that every property owner would pay an additional $850 in school property taxes.

3. Why is the district asking for additional operating revenue now?

The district is facing increasing operating costs while state funding has not kept pace with inflation.

Sibley East currently receives approximately $7,481 per pupil through the State General Education Revenue Formula. According to the district's analysis, if that funding had kept pace with inflation over the past 23 years, the amount would be approximately $8,901 per pupil.

The School Board also approved a 2026–2027 budget that includes approximately $250,000 in deficit spending, and the district's general fund balance is expected to decline.

4. What has the district already done to address its financial challenges?

In spring 2026, the School Board approved approximately $245,000 in budget reductions and adjustments.

These included reducing administrative costs and making structural changes to classroom staffing. Staffing has also been adjusted to accommodate larger class sizes as a way to reduce expenses.

5. Why can't the district simply reduce its budget further?

The district will continue to evaluate expenditures and make responsible financial decisions regardless of the outcome of the referendum.

However, additional reductions would increasingly affect the size of classes, staffing, programs and other services provided by the district.

The School Board's responsibility is to balance financial sustainability with the district's responsibility to provide educational opportunities and services to students.

6. What would the additional operating revenue be used for?

If approved, the additional revenue would provide the district with greater flexibility to address staffing and program needs while maintaining a responsible general fund balance.

• Add back teaching positions that have been left unfilled.
• Reduce class sizes in elementary and middle/high school classrooms.
• Continue current academic and extracurricular programming.
• Potentially add high school courses not being offered during the 2026–2027 school year.
• Strengthen the district's general fund balance and long-term financial stability.

7. What happens if the referendum is not approved?

If the referendum is not approved, the district will continue to operate within the revenue available to it.

Because operating expenses are expected to continue increasing, the School Board would need to consider additional budget reductions and adjustments.

• Continued increases in class sizes.
• Additional staffing reductions or positions left unfilled.
• Reductions or changes to programs and activities.
• Other expenditure reductions necessary to maintain a balanced and financially responsible budget.

8. What would the tax impact be?

The proposed operating referendum would increase school property taxes based on the value and classification of each property.

For a residential property valued at $250,000, the district estimates an annual tax impact of approximately $225 per year.

For agricultural property, school property taxes are calculated using the taxable value of the home, garage and one acre of land, as applicable.

9. How does Sibley East compare with neighboring school districts?

Sibley East and Belle Plaine are currently the two districts identified by the district as not having an operating referendum in place.

If Sibley East's proposed $850 per-pupil-unit referendum were approved, its operating referendum authority would fall approximately in the middle of the neighboring districts identified in the district's comparison.

This comparison is provided as context and does not by itself determine whether the Sibley East proposal is appropriate.

10. How do total school property taxes in Sibley East compare with neighboring districts?

Based on the district's current comparison of school property taxes on a $250,000 residential property, Sibley East currently has the second-lowest total school property tax among the neighboring districts identified.

If the referendum is approved, the district estimates that a $250,000 Sibley East residential property would move to approximately the middle of the neighboring districts in total school property taxes.

11. Is the referendum permanent?

No. The proposed operating referendum would be in place for 10 years.

12. Who decides how the referendum revenue is spent?

The Sibley East School Board is responsible for approving the district's annual budget and determining how available district resources are allocated.

Referendum revenue would become part of the district's operating resources and would be subject to the district's normal budgeting, financial reporting and oversight processes.

13. Where can I find additional information?

Additional information is available on this referendum webpage and through the resources below.

Community members with specific questions may also contact Superintendent Eric Martinez using the contact information at the bottom of this page.

If the district does not immediately have an answer to a specific question, the district will work to obtain the information or connect the individual with someone who can provide it.