MARSHALL — The Marshall Public School’s $2 million, 10-year operating referendum has been rejected amongst voters at Tuesday’s special election, with unofficial results showing a failed margin of 54%. Preliminary results show 1,415 votes (46%) in favor of the levy, to 1,647 opposed.

The school board will canvas the official results at a special meeting on Monday.

“While this is not the ideal outcome for our schools, we respect the decision made by voters,” MPS superintendent Jeremy Williams said. “Our attention now turns to determining how to reduce our budget and avoid additional deficit spending.”

MPS was seeking an operating referendum to source local funding to support daily operations and education costs. The district is facing a $1.8 million budget shortfall this school year, and coming off a $1.1 million budget deficit last year, with the anticipation of budget challenges to continue over the coming years with state funding not keeping up with the rate of inflation.

Marshall, who has not had an operating levy in place since 2018, tapped into reserve funding to cover its budget deficits last year and will do so this year, which district officials have noted these funds are primarily used for emergencies.

The district made $350,000 in cuts, as directed by the school board last April, for this school year, including reductions to software purchasing, school programming, and some staffing positions.

Upon the rejected referendum, the MPS district will now look to make a minimum of $1.9 million in cuts beginning next school year, with more anticipated reductions and cuts to follow in the coming years.

Of the proposed budget reductions district officials released in September to take place next year, the list includes cuts to administration, classroom aide staffing, career and technical staff positions, core teaching positions, increased fees to activities and senior passes, and the eliminations of a few student activity programs and one transportation route with both elementary schools by adding a one-mile radius.

The first proposed list of cuts include 29 staff positions across the district, with class sizes expected to increase approximately 20%.

The final list of reductions is to be presented to the school board no later than Feb. 2, 2026.

“We’ll be communicating transparently with families and staff as we navigate these challenges,” MPS Director of Finance Sarah Kirchner said. “We will continue to explore other opportunities to boost funding for our schools and reduce spending in ways that minimize negative impacts to our students.”