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| School property tax levy to go up 13.6% |
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| Monday, 10 December 2007 | |
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Cliff Buchan News Editor Don’t like the proposed 13.6 percent property tax increase in ISD 831 for 2008? Blame it on property tax shifts from the state and the inability of the state to fully fund programs. When the Forest Lake School Board meets at 7 p.m. on Thursday, Dec. 13 at the District Office Building, it is expected to take action on the recommended levy payable in 2008 amounting to $16,366,469. That’s an increase of 13.6 percent or $1,9366,469 over the 2007 tax levy of $14,402,050. The property tax levy includes dollars for all general fund needs, Community Service and voter-approved debt service. Voter-approved operating tax levies are also included within the new general fund levy amount. Some 11.4 million of the proposed levy will go to the general fund. The approval on Dec. 13 will come during the board’s second review of the tax plan as stipulated under state law. The board’s Truth in Taxation hearing took place Tuesday, Dec. 4 with an audience of two students and four community members. The meeting lasted 23 minutes. Board President Bill Bresin said this week he plans to offer the public time to comment during the hearing tonight. Board action on the levy for 2008 will be taken, Bresin said. Why the increase The school district’s entry into the Quality Compensation state teacher pay program is a major factor in the jump in taxes. The Q Comp program establishes a new pay for performance funding vehicle that rewards teachers for extra training, their performance and the improved academic standards of students K-12. Q Comp is a pet program of Gov. Tim Pawlenty, said Larry Martini, director of financial services last week. The goal, he said, is to help the teaching staff improve which in turn is expected to help improve student achievement. But the program comes with a cost. Forest Lake’s agreement to join Q Comp (the Forest Lake Education Association voted to approve the plan) carries a price tag. While the state provides funding, it does not fully fund the program. For the current school year, the district will collect some $1.4 million in state aid for the program, but must levy an additional $516,857 against local property taxes to fund the program. Because the 2007 levy was set before teachers approved the program, the district will be forced to use two levies for 2008 to cover all local cost obligations. That means tacking on a second $516,857 levy in form of an adjustment for prior years. Teachers in the district have yet to ratify the Q Comp program for the 2008-2009 school year. That vote is expected early in 2008. Martini said the alternative compensation levy category and other state shifts from state aid funding to levy funding are placing more of the burden of funding schools on local property taxes. Along with the funding for Q Comp, property taxes will also be hit with an additional $123,861 thanks to a state shift of operating capital revenue from state aid to the local tax levy. The funds are used for capital purchases. Without the dollars in the levy for Q Comp, the district would have needed a total $930,705 in additional levy dollars for 2008. That would have been an increase of 6.5 percent as opposed to the 13.6 percent increase that has been proposed. Public comments There were few public comments at the Dec. 4 hearing as most of the meeting time went to Martini’s presentation. Bob Linwood, Forest Lake, however, did lambast the board for its tax proposal. Linwood, who earlier spoke against the city of Forest Lake’s tax and spending plan for 2008, turned his attention to the school district last week. With current property values presenting a false picture of what actual values are today, Linwood said taxpayers are going to be hit hard. “I just wonder what you people are thinking,” Linwood said, commenting on the 13.6 percent proposed increase. He said he was also troubled that the district intends to spend more than it takes in during the 2008-2009 school year. “I can’t spend more than I take in,” he said. “I can’t run my budget like that.” He predicted property values would tumble some 20 percent by 2009. According to district figures, the local property tax amounts to 14 percent of total district revenue. State aid funds 79 percent of the budget while federal funding covers 3.4 percent of spending. Some 3 percent comes from fees and other minor sources. Some 80 percent of district expenditures are staff related. Social Bookmarking ...       |
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