Ark Valley News - Schools’ proposed budget lowers tax

Schools’ proposed budget lowers tax
By Chris Strunk
Last Updated: July 24, 2014

If the Valley Center school board approves the district's proposed 2014-15 budget, property owners will receive a bit of relief on their tax bills and there will be more money for classrooms and infrastructure.

During a special meeting July 21, the board voted to publish the $33.4 million spending plan for the next two weeks and set a public hearing at 6:55 p.m. Aug. 11 before giving it final consideration.

"We believe this is a fiscally responsible budget with some wiggle room … and some tax relief," Superintendent Cory Gibson said. "Both of those are positives in our community."

The proposed budget includes a 1.765-mill dip in the estimated property tax mill levy, from last year's 61.682 mills to the proposed 59.917 mills, the district's biggest tax decrease since 2006-07. A mill is $1 of taxes for every $1,000 in assessed property value. If the new budget is approved, the owner of a $150,000 home in the Valley Center school district could see a $30 decrease in property taxes next year.

The property tax relief is thanks in large part to the state Legislature's recent school funding bill, approved in response to a school finance lawsuit. The bill reinstates equalized funding for capital improvement funds and increases equalization for local option budgets by 2 percent.

In all, the district is seeking authority to spend $3.1 million more in 2014-15 than it did in 2013-14. Gibson said the district likely will not spend up to the overall authority.

As outlined by Gibson, other highlights of the budget include:

•A $14 increase in base state aid per pupil. The budget was built on a nine-student increase in enrollment.

•A 2.96 percent increase in the district's assessed property valuation.

•A 2 percent increase in state funding for bond and interest payments.

•Salary increases for employees (about 3 percent) and an increase in the number of teaching and support positions.

The proposed budget includes a $112,795 spending increase in the general fund, a $125,957 increase in the local option budget, a $955,000 increase in capital outlay (because capital outlay wasn't funded last year), a $123,300 increase in virtual education, a $165,209 increase in special education, a $185,417 in KPERS and a $126,275 decrease in at-risk.

The new budget would decrease the local option budget mill levy by about 9 mills to 12.637 mills, accounting for the increase in state equalization funds. The capital outlay fund will jump up to 6.5 mills. The fund was reduced to zero mills last year and placed in the local option budget because the state wasn't providing equalization to capital outlay funds.

Board member Colin McKenney asked Gibson whether the district had developed a plan for the capital outlay fund, which is estimated to be $2.9 million next year.

Gibson said he plans to present a 25-year plan for infrastructure improvements to the board next month. It likely will be focused on roof and air conditioning projects for the first couple of years.

Finally, the estimated bond and interest fund mill levy will be 20.780 mills, up from 19.928.