By Aaron Bushberger, Senior Municipal Advisor
and Matthew Hammer, Senior Municipal Advisor

School referendums play a critical role in shaping the future of education. Authorized by school boards, these elections typically seek voter approval for two purposes: building projects or additional operating revenue. Both are essential for maintaining quality education and meeting community expectations.

Recap of November 2025 Elections: What the Numbers Tell Us

This past November, Minnesota school districts placed 96 questions on the ballot. The majority of those elections focused on operating needs, reflecting the growing pressure on districts to sustain programs and services amid rising costs.  Of the 69 questions that included operating referendums and capital project levies, 46 passed, for a success rate of 67%.

Ballot questions that included building projects had an overall passage rate statewide of 55%.  While the four metro area bond referendums all passed, rural districts saw their results split 50/50.  About $422 million worth of bond referendums were successful this past November.

Key Trends:

• Operating referendums dominated the ballot.
• Operating referendum questions that included inflationary adjustment language outnumbered questions without inflation by almost a 4-to-1 margin.
• 100% of capital project levy renewals passed

Several Ehlers’ School Finance clients celebrated big wins! Breckenridge, Hopkins, Lake of the Woods, Mahtomedi, Parkers Prairie and St. Michael-Albertville all achieved successful bond elections, paving the way for transformative projects and stronger learning communities.

Roadmap to Referendum

If your district is considering a referendum in the next few years, planning is essential. Below is a guide to help you get on the right track.

Understand the Needs

Begin by analyzing and understanding your needs and wants.  If the needs are financial, start with your current situation and projecting forward taking into consideration enrollment, contract settlements and curriculum plans.  Ehlers’ budget projection model provides a clear, scenario-based analysis to help districts understand both current and future financial needs.   If your needs are facility based, create a districtwide facilities assessment which will allow you to start prioritizing projects.  Ehlers can help districts evaluate their current debt profile, tax base, and available financing tools—including those authorized by the board without voter approval—to ensure informed and strategic planning.

Lay the Foundation

Assemble a strong core team that brings together expertise in finance, facilities, communications, and legal matters. This multidisciplinary approach provides the breadth of knowledge needed for informed decision-making, effective messaging, and seamless execution throughout the referendum process.  The foundation of any referendum begins with developing a clear understanding at the school board level.  Our partnerships with school districts typically begin with a series of informative, collaborative board workshops aimed at understanding current and near-term needs, evaluating available options, and developing a comprehensive long-term plan.

Adhere to Administrative & Legal Requirements

Ensuring compliance is non-negotiable for referendum success.  Develop a clear timeline that meets all legal requirements, ensuring compliance and avoiding last-minute challenges. Districts must meet all election deadlines and adhere to state-specific regulations throughout the process. Ehlers works closely with election counsel to ensure accurate tax rates, proper referendum authority, and ultimately a compliant bond issuance. Careful attention to these requirements helps avoid legal challenges and will keep the referendum on track.

Refine the Request & Call to Action

Refinement and prioritization of projects should be guided by stakeholder feedback. School districts face limited resources and competing budget pressures, making it challenging to fund every capital need or educational endeavor. The key to success lies in developing a solution that stakeholders can support, advocate for, and confidently present to taxpayers.  The school board will make it official by adopting a formal resolution, prepared by election counsel, which authorizes the referendum.

Successful school referendums don’t happen by chance—they are the result of thorough understanding, careful planning, and transparent communication. By starting early, building a clear roadmap, and prioritizing trust at every step, districts can position themselves for success even in challenging financial environments. Whether your goal is to secure operating revenue or fund critical facility improvements, the key is collaboration: align your board, engage stakeholders, and deliver on your commitments. When districts lead with clarity and integrity, they not only win elections—they strengthen the foundation for future generations.  Join us at our upcoming school finance seminar or give us a call and let Ehlers help you navigate the process.

Important Disclosures: Please Read

Ehlers is the joint marketing name of the following affiliated businesses (collectively, the “Affiliates”): Ehlers & Associates, Inc. (“EA”), a municipal advisor registered with the Municipal Securities Rulemaking Board (“MSRB”) and the Securities and Exchange Commission (“SEC”); Ehlers Investment Partners, LLC (“EIP”), an investment adviser registered with the SEC; and Bond Trust Services Corporation (“BTS”), holder of a limited banking charter issued by the State of Minnesota.

This communication does not constitute an offer or solicitation for the purchase or sale of any investment (including without limitation, any municipal financial product, municipal security, or other security) or agreement with respect to any investment strategy or program. This communication is offered without charge to clients, friends, and prospective clients of the Affiliates as a source of general information about the services Ehlers provides. This communication is neither advice nor a recommendation by any Affiliate to any person with respect to any municipal financial product, municipal security, or other security, as such terms are defined pursuant to Section 15B of the Exchange Act of 1934 and rules of the MSRB. This communication does not constitute investment advice by any Affiliate that purports to meet the objectives or needs of any person pursuant to the Investment Advisers Act of 1940 or applicable state law. In providing this information, The Affiliates are not acting as an advisor to you and do not owe you a fiduciary duty pursuant to Section 15B of the Securities Exchange Act of 1934. You should discuss the information contained herein with any and all internal or external advisors and experts you deem appropriate before acting on the information.