STORM LAKE, IA (Northwestiowanow) — The Storm Lake Community School District is facing another difficult budget year and is proposing a property tax levy increase for the 2026–27 fiscal year.

District officials outlined the proposal in a recent budget notice, which calls for a levy of $19.35 per $1,000 of taxable valuation, an increase of $1.40 from the current rate. Leaders say the nearly 8 percent increase is being driven by declining enrollment, lower property valuations, and rising costs.

Enrollment dropped by 44 students last fall, reducing state funding tied to the annual count day. The district will receive about $143,600 through the state’s budget guarantee to help offset that loss. Even with a 2 percent increase in State Supplemental Aid, district leaders say funding still lags behind inflation.

Special education continues to be a major strain, with the district’s deficit nearing $2 million. To manage costs, the district plans to maintain existing levies, adjust others, and eliminate the general cash reserve levy while continuing budget cuts totaling about $1.5 million.

The school board will continue budget discussions in the coming weeks ahead of final approval.