MARSHALL — Facing significant budget shortfalls, the Marshall public school district has officially called for a $2 million voter-led operating referendum to increase its general education revenue by $765 per pupil.

The special election will be held on Nov. 4, 2025.

“The ask of the referendum we’re looking at is a $2 million operating referendum that will be proposed to maintain current programming, staffing levels and small class sizes. Without this funding, the significant cuts in operations, curriculum, staffing and services will be necessary,” Superintendent Jeremy Williams said at Monday’s school board meeting. “The dollar amount we think is appropriate, and we feel like this is a way we can bridge that gap within our budget and be able to move forward and continue the great things that are happening in Marshall Public Schools.”

The Marshall school district saw a $1.1 million deficit for the 2024-25 school-year ending balances, and is projecting a nearly $1.8 million deficit for the upcoming school year.

If the operating referendum is passed, revenue to the district would begin in Fiscal Year 2027, the year Director of Finance Sarah Kirchner expects to see a complete loss of cash flow is district funding.

“As soon as 2027, without any additional revenues or funding generation, we’re definitely going to run out of funding. This means that we will not cash flow throughout the year,” Kirchner said at the June 2 board meeting while presenting a budget update. “When projecting out what our revenues and expenses would look like if this referendum were to pass this coming November … Based on an addition of $2 million in referendum revenue, (it) does give us a positive fund balance, then allowing the district to cash flow year after year.”

The referendum would be applicable for 10 years.

The district works with Ehlers Public Finance Advisors, who have worked with the county in estimating tax impacts.

With a $2 million operating referendum, a $225,000 residential homestead is estimated to have a $26 monthly property tax increase.

Homesteads valued at $100,000 will have taxes increased by approximately $11 a month, and $500,000 will increase around $57 monthly.

Property tax on agricultural land will not increase.

“I know we’re a very large agriculture community, so that’s always important to our community to find out how those properties are affected,” Kirchner said. “The actual land isn’t affected by an operating referendum. What those owners would be paying on is their home, garage and one acre of property.”

Marshall’s last had an operating referendum in 2018 for $675 per pupil. The district pursued one in 2022, but was not passed.

“In 2022, we approached the community with a similar request to manage a $1.8 million budget gap. While the request wasn’t approved, we were able to maintain student programs and services thanks to temporary COVID relief funds,” Williams said in a report on Monday presented in the meeting. “Those dollars are now gone, and with rising costs and no new funding from the state or federal level, we are once again facing budget deficits over the next four years.”

Marshall will be launching a referendum website this week at www.tomorrowstigers.org.

The website will serve as a public portal of information for Marshall residents regarding the referendum, tax impacts and more.

“We have so many things in place that, just in order to maintain those programs and those results that we’re seeing … We need to have the funding in place to cover those programs and the staff to keep all those things in place,” Williams said.

Williams and the board will continue to engage with the public regarding information and opportunities to discuss the referendum, and the next school board meeting is July 21 at 5:30 p.m. in the district office professional development room, which community members are welcomed to join.

The vote on the November ballot will read, “The school board of Independent School District No. 413 (Marshall Public Schools) has proposed to increase its general education revenue by $765 per pupil. The proposed referendum revenue authorization would be applicable for ten years beginning with taxes payable in 2026, and increase each year by the rate of inflation beginning with taxes payable in 2027, unless otherwise revoked or reduced as provided by law.”