LINN — Linn R-2 Superintendent Bob James told board members on Thursday that asking voters to approve a tax-levy increase is a necessity if the district is to continue building a successful culture.

“If we are to move to the minimum legislated salary and continue improving the district, without placing an inordinate strain on our finances and sacrificing other efforts, we must consider moving from our minimum operating levy,” said James, noting the district’s $2.75 levy is among the lowest in the state.

While Linn R-2’s assessed valuation has improved, a $.50 increase would accommodate a move to the legislatively-required base salary of $41,200 and move the hourly base.

James told the board he believes he can increase the certified teacher salary schedule to the legal minimum without the Teacher Base Salary Grant for the 2026-27 school year. However, there are implications to consider.

“We can lock down our budget to get certified teaching staff to $41,200, but that does not change the base for our hourly employees whatsoever,” said James. “We can survive that on current terms, if nothing changes, but I believe we are going to look at state cuts.”

He noted that Linn R-2 students are not qualifying for Early Childhood Special Education. “That’s a backhanded blessing, but that means that federal funding goes away,” said James, explaining that it totals about $130,000 a year. “I will apply for grants, and I believe I’ll get some of them, but I’m anticipating some loss of revenue in terms of what we received in the past.”

Maintaining a healthy fund balance between 30% and 40% is untenable with a minimum operating levy.

Pacing the state’s required increases will cost R-2 approximately $300,000 per year after the $4,200 raise for every teacher. “That will strain our reserves,” said James. “That is a 4% burden to our fund balance every year. At a nearly 40% reserve, it will take three years under current funding to deplete our reserves to at or below our 30% threshold.”

That does not address hourly wage gaps for secretaries, paraprofessionals, substitutes, etc. “We will have to remain where they are and continue to be driven by the $37,000 base salary until I can find a funding source to move them,” said James. “This move will place a serious strain on our general funds; we will not have much room to do anything else for 3-5 years.”

James also said that state funding is a concern. “I really worry about the state’s resources in the next three to five years, so I would rather we be proactive about this now, instead of facing a tight budget and having to do it after the fact,” he added.

No vote was taken. James will provide ballot language, and the board will need to decide at the January meeting whether to proceed with a ballot issue in April. The deadline for submission is Jan. 27.

Additional financial considerations and other business from this meeting will be presented next week.