MARSHALL, Minn. — Voters in the Marshall Public School District have rejected an operating levy that would have provided $2 million annually, or about $765 per pupil, for the next 10 years, according to a press release issued by Superintendent Jeremy Williams.

According to preliminary results, the referendum failed with 1,415 votes (46%) in favor and 1,647 votes (54%) against. The school board is expected to certify the results at its next meeting.

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

Ahead of the vote, the school board outlined roughly $1.9 million in potential budget cuts if the measure did not pass. Those reductions include eliminating 29 staff positions, reducing electives, extracurriculars, and specialized courses, and ending bussing within one mile of elementary schools. Class sizes are projected to increase by about 20%.

“We’ll be communicating transparently with families and staff as we navigate these challenges,” said Sarah Kirchner, the district’s Director of Finance. “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.”

If approved, the levy would have supported operating expenses such as teacher and staff compensation, classroom supplies, student programs, utilities, and facility maintenance.