UPDATE: Operating levy fails to pass for Owatonna schools

Owatonna voters have voted down the only question on the Nov. 4 ballot – for an increase in the operating levy for Owatonna Public Schools.

The request to raise the levy by $700 per pupil failed by nearly 1,900 votes, or 61.8% to 38.1%. Nearly 8,000 votes were cast.

Had it passed, local homeowners would have seen a hike of about $23 per month on a home valued at $275,000; the school district would have seen an additional $3.7 million annually.

“While we are disappointed that the measure was not approved, we remain committed to providing a high-quality education for the students of Owatonna,” said Superintendent Tammy Champa. “Now we must engage in difficult decisions as we determine the path forward.”

Without the additional funding it will provide, at least $3 million will need to be cut from the 2026-27 budget, district officials have said.

The cuts, they said, would include increased class sizes due to staff layoffs, reductions in school and district support services; and cuts to academic offerings, athletics, activities and music programs.

The financial shortfall and expected action will be addressed by conducting a thorough review of all programs, staffing, services and operations, the district said.

It will also present options to the Owatonna School Board for how to balance the budget, as well as explore cost savings and alternative revenue sources.

“Despite the lack of support for the increased operating levy, we will continue to do our best to maintain the strong foundation we have in Owatonna,” said Mark Sebring, chairman of the school board.

The board, he said, “will work with district leadership and continue to keep the community informed of the changes that will be implemented.”

The district approved budget cuts of $1.8 million for the current school year to balance its budget.

For more reactions from district leaders and a potential path forward, watch for the Nov. 12 edition of the Steele County Times.