“The benefit (of approving the proposed tax rate) is adding more value to your pennies,” Self said. “By receiving the maximum state funding, we get the most from the state without burdening local taxpayers.”
A yes vote will generate additional money from the state– about $420,000 extra, according to the superintendent.
A no vote will generate $150,000 less than last year in state and local funds, he said, but the taxpayers will still end up with the same $1.441 rate. If state funds are decreased, the district will be forced into deficit spending, Self says.
“We’re trying to maximize the amount the state sends us,” he said. “The school has a lot to gain if this passes. If it doesn’t pass, the district voters have nothing to gain.”
The board of trustees crunched the numbers, adopted its budget a month early, and passed an ordinance that outlines how voting for a higher tax rate will allow the board to lower the tax rate on the interest and sinking fund, which is the debt incurred from a bond to made improvements to the school.
The superintendent, who is also the business manager, says the school can only get more state funds by increasing its maintenance and operating rate. Any hike above $1.04 requires an election. By asking for the maximum allowed by the state –$1.17 – the school will obtain more state funds which will allow them to decrease the rate on the interest and sinking fund by 13 cents, which would be a wash.
The superintendent said the board held off last year in raising the rate and holding the election. Self said, as he understands it, approximately 250 schools have called for an election in the three years since the legislature lowered the maximum rate and, at the same time, passed unfunded mandates.
“It’s not a matter of if other schools will hold an election but when,” he said. “The only districts that may not hold rollback elections are fast-growing schools. Everything is going up –insurance, gas, electricity, salaries, and other expenses so schools cannot stay at the same rate.”
Last year the board adopted a budget that was not balanced, Self said.
“We were waiting to see if the legislature would help us and other districts with the same pupil ratio. We were all hurt by the legislation,” he said. “We’re not in bad shape right now but it’s only a matter of time if this doesn’t pass.”
In an effort to hold off as long as possible, the board froze all administrative, paraprofessional and maintenance salaries.
“Every organization has places to cut,” he said. “But now we’ve cut pretty much all we can.”
The board adopted its budget based on the total $1.441 rate so, regardless of how the vote goes, taxpayers will pay the same amount. At stake is additional state dollars.
“It doesn’t make much sense the way we’re doing it but that’s what the state requires,” Self said.
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