SF5279

Purpose

• To modify how operating referendum ballots are noticed and approved, and to require voter approval for renewing existing referendums unless specific notice requirements are met. The bill also adds new requirements for how referendums are scheduled, described on ballots, and transmitted to taxpayers, and it creates a process for revoking or reducing previously approved revenue in a subsequent referendum.

Key concepts and definitions

• Referendum: a public vote by district residents on whether to increase revenue for operating purposes.
• Operating referendum: a voter-approved authority to raise revenue for a school district’s day-to-day operating costs.
• Per adjusted pupil unit (per adjusted pupil): the measurement used to set and express the amount of revenue per student unit.
• Adjusted pupil unit: a metric used to calculate a district’s revenue and levy authority.
• Revocation or reduction referendum: a later vote to reduce or revoke the previously approved revenue.

Main provisions

• Voter approval required for renewals

  • A school board may not renew an operating referendum without voter approval, unless the required notices have been provided. This strengthens the need for public consent when extending or renewing levy authority.

• Referendum timing and scheduling

  • If the district increases levy authority, the referendum must be conducted one or two calendar years before the increased levy becomes payable.
  • Only one election to approve an increase may be held in a calendar year.
  • Ballots may describe a schedule for increasing revenue or state that increases will grow with inflation (using the inflation calculation defined in the law).
  • The ballot must specify the number of years the increased revenue is authorized, up to a maximum of ten years.

• Ballot content and labeling

  • The ballot must state the maximum amount of increased revenue per adjusted pupil unit and may compare the proposed increase to expiring authority.
  • The ballot may include a revocation or reduction question and must indicate the per-adjusted-pupil-unit amount by which authority would be reduced if revoked.
  • The ballot must explicitly include text explaining that passing the referendum will increase property taxes, and for renewals, that it extends an existing levy at the same per-pupil amount.

• Notice requirements for voters and taxpayers

  • The school board must mail at least 15 days and no more than 45 days before the referendum to each taxpayer, using county records to identify property owners.
  • Notices must project the anticipated annual tax increase for typical property types (residential, agricultural, commercial/industrial, etc.).
  • Owners listed in county records are presumed to receive notice; others may request inclusion of their name.
  • Notices may reference that an existing referendum is expiring and the anticipated increase for the first year if renewed.

• Renewal notice wording and renewal options

  • Notices must include statements about the impact on property taxes, and for renewals, that the referendum extends the existing operating referendum at the same per-pupil amount.
  • Notices may state that the referendum can be renewed once for an additional term by the school board vote.

• Revocation or reduction process

  • A separate referendum can revoke or reduce the increased revenue amount.
  • The revocation/reduction must specify the new per-adjusted-pupil-unit amount to be reduced.
  • Revenue authority approved by voters is available to the district before a future revocation/reduction referendum.
  • Only one revocation or reduction referendum may be held for any given year and for subsequent years.

• Administrative and procedural requirements

  • The district must notify the state education commissioner and the county auditor at least 15 days before the referendum.
  • Within 15 days after results are certified, the district must notify the commissioner of the results.
  • The district may use the state’s standard notice process (section 275.60) but with modifications for renewal of existing levies.

How this changes existing law

• Strengthens public participation: renewals of operating referendums require voter approval and explicit notice to taxpayers.
• Increases transparency: districts must provide detailed tax impact projections for various property types in mailed notices.
• Expands ballot options: ballots can include schedules, inflation-based increases, and explicit revocation/reduction questions.
• Clarifies revocation mechanics: creates a clear process for reducing or ending a previously approved revenue source, with conditions and limits.
• Tightens timelines and reporting: adds specific timelines for notice delivery and post-election reporting to state authorities.

Practical effects for districts and taxpayers

• Districts must plan referendums more carefully, ensuring voter input is obtained for renewals.
• Taxpayers receive more detailed information about potential tax changes and the fiscal impact on their property taxes.
• There is a formal pathway to reduce or revoke previously approved funding if voters later decide to change course.
• The process introduces more formal notices and state oversight for referenda decisions.

Timeline and process details (highlights)

• Referendum timing: conducted one or two years before increased levy becomes payable; only one election per year.
• Ballot details: includes max revenue per adjusted pupil unit; may show inflation-based increases; up to ten years of authority.
• Notices: mailed 15–45 days before the referendum; must project tax impact by property type; weighted toward county tax records.
• Renewal language: may state renewal extends existing levy; may require board action to renew.
• Post-election: district notifies the commissioner and county auditor within the specified windows.

Relevant terms - operating referendum - referendum revenue - per adjusted pupil unit - adjusted pupil unit - renewal - revocation - reduction - inflation - ballot - notice (mail notice) - county auditor - county treasurer - property taxes - tax impact projections - commissioner - canvassing board - first Tuesday after the first Monday in November - Section 275.60 - maximum years (up to ten) - approval threshold (50% plus one)