The Need

Financial and Facility Crossroads

The school is at a financial and facility crossroads; community investment is needed to ensure a strong future for our school. We face significant operational and facility challenges that we must address soon.

Financial crossroads: Budget reductions and accommodations

The district has reduced its budget significantly in 7 of the last 10 years while enrollment has stabilized at around 500 students. (edited 10/7/22)
A 4-day school week (which began in 2008) saves $125,000 per year. (edited 10/7/22)
Special state legislation authorizing one-time use of capital funds for operations and COVID relief funds have been a temporary solution. Those funds will run out in soon.
Students deserve quality teachers, but we’re not offering competitive salaries and teachers are leaving.

Read more about Operational Challenges below.

Facility crossroads: “New school” is showing its age

Because our “new school” is 30-years-old, some major maintenance work is required to keep it going for the next 30 years. Major components of our infrastructure are at the end of their useful life. We’ve completed some updates, but do not have the funds available to take care of the rest.
Read more.

Operational Challenges

Enrollment Stable, Revenues Not Keeping Pace with Inflation

While enrollment at Ogilvie Public Schools was 800 students back in 1997, and 600 in 2005, enrollment leveled at 500 in 2014 and has remained generally stable ever since. Forecasts indicate continued stable enrollment for the next several years. This is good news as revenue is based on student enrollment. Stable enrollment should mean the ability to maintain programs and class sizes, but due to state funding not keeping pace with inflation, Ogilvie has continued to have budget shortfalls. If state revenue had kept pace with inflation, it is estimated that state revenue per pupil would be $8,126 this year, $1,263 more than the actual figure.

Continuous Efficiencies and Cuts

Ogilvie Public Schools administration and school board are committed to continuous improvement in efficient management of the school district. A review of the last 10 years of budgets shows a constant evaluation of ways to improve, ways to save money, and budget reductions to balance the budget. Due to the pandemic, budget reductions weren’t as clear in the last two years as new revenues were received and new spending was required to keep students and staff safe.

Cuts and efficiencies have included:

A pay cut for the superintendent,
Staffing reductions,
Not filling positions when employees retire or resign,
A reduction in maintenance contracts,
A reduction of a bus route,
Discontinued software program contracts,
Shortened work day for some employees, and
Reduction of athletic competitions.

Ogilvie Public Schools has nipped and tucked around every edge and cut deeper when necessary.

Short-Term Solutions Expiring

Since the expiration of the Capital Facilities Loan (maximum effort loan) in 2020, Ogilvie Public Schools has been able to fill budget gaps by refunding bonds, a fund transfer approved by the state, and one-time federal pandemic relief dollars. However, these are temporary measures that will not be available in the future.

The district has been close to Statutory Operating Debt (SOD) but has used the above-mentioned funds to keep a positive fund balance. Once the funding sources mentioned above are gone, the district will most likely be in SOD and not able to cover operating costs. Under Minnesota law, a school district is in SOD when it reports a year-end net negative general fund balance exceeding more than 2.5% of its operating expenditures.

As a result of this funding situation, an operating levy is necessary to sustain programs and services for students. The last time the community approved an operating levy for the Ogilvie Public Schools was 1999