By Paula Barness
Prior to their regular meeting on December 15, 2025, the Kingsland School Board held their annual Truth and Taxation hearing.
Kingsland business manager Julie Schreiber told the board currently, the allowance per pupil is at $7,481, but if the general education formula allowance actually kept up with inflation it would be at $8,951.
“When the general education formula does not keep up with inflation then that is where we have to start thinking outside of the box and say ‘where are we going to get our revenue from?’ That is when districts go out for different voter approved levies,” Schreiber explained.
Schreiber noted Minnesota is also significantly underfunded for special education programs. “In FY (fiscal year) 2023 we were underfunded by $726 million. By FY 2027 we are thinking we are going to be underfunded by $455 million statewide. So the primary options to fund that gap are going to be to cut regular program budgets or to increase referendum revenues. Most district have or are trying to do both.”
When looking at the revenues for the 2025-2026 adopted budget, the general fund is at $8,074,528, which is a 3.18% decrease from the previous year. Food service also saw a small decrease at $493,518, as did scholarships at $90,350. Community service is up slightly to $483,781 and debt service is up to $1,892,271.
The General Fund is sourced primarily by the state of Minnesota with 75%, property tax makes up 15%, Federal sources make up 3% and 7% comes from other local sources.
The expenditures for the 2025-2026 budget see the General Fund at $8,198,096, food service at $594,647, community service at $502,836, construction projects at $4,771,946, activities at $225,776, scholarships at $90,350 and debt service at $2,136,800.
Discussion then moved to the local optional revenue (LOR), operating referendums and the equalizing factors. The State Equalization Formula is set up to provide more state aid to districts with less property wealth per student.
“There are four different tiers, so you take those numbers and divide the value of your land divided by how many kids you have (all grade age children within district boundaries). This means the more money you have per student the more the state says the local taxpayer can probably foot the bill,” Superintendent Scott Klavetter explained.
Because the Kingland district is considered land-wealthy the district is currently at Tier 1. This means the LOR and referendum allowance levels are up to $300 per pupil with an equalizing factor of $880,000 per resident pupil unit.
“The higher your land value gets the less tiers of equalization you qualify for. When I started at Kingsland we qualified for a Tier 2 now we only qualify for a Tier 1,” Klavetter said. “That doesn’t mean the school district is getting more money. It means more of it is coming from the local taxpayer and less of it is coming from St. Paul.”
Klavetter noted the Minnesota Rural Education Association (MREA) has been lobbying for inflation to be considered in these Tiers. As land prices increase, more and more rural schools are losing equalization because “what constitutes wealthy hasn’t changed in 30 years.”
The effective tax rate estimate from 2024 shows farms at .41 percent, seasonal recreation at .74%, Residential homestead at 1.15%, apartments at 1.43%, public utility at 2.44% and commercial-industrial at 2.90%.
The board voted to certify the final tax levy at $3,237,754.03, which is a slight decrease of $3,356, or 0.10% change from last year’s levy.
Other Business
The board approved a memorandum of understanding (MOU) changing from their current healthcare plan to an HSA-style plan.
The senior class asked the board to consider approving their senior trip to Duluth, Minn. The trip will be from May 17-20 and will include activities such as touring Glensheen Mansion and a scenic train ride around Duluth. The board approved the request.
The board approved a resolution recognizing Minnesota Paid Leave Guidelines, though the district will not be “topping off” the income from the Guidelines.
Following a recommendation from the teachers union, the board approved continuing the teacher seniority list.
The 2026-2027 school calendar was approved.
The strategic planning services contract with the Minnesota School Boards Association was approved for $8,300.
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