SD6 board worried about reval's impact on budget
The School District Six School Board expressed concern about the changes to property valuation at a budget meeting last week. The board approved the new budget for the 2015-2016 school year at $9,933,612 for the elementary district and $5,603,883 for the high school district. Board Member Jim Henjum was absent.
The tax value dropped by 7.73 percent in the high school district and the elementary district decreased by 11.20 percent. Senate bill 157 revised property tax laws starting a new appraisal cycle this year. The bill also removed the residential tax exemption and changed the assessment rate.
"When these changes are coupled with a decrease to the market value as a result of the re-appraisal as described above, it took an additional 25.11 mills to generate the same amount of local tax revenue," District Business Manager Dustin Zuffelato said in a report to the board.
Board Member Barb Riley said that even if a property's appraisal goes down, taxes on it could go up. She reminded the board that every school district is in the same boat, as is the city and county, and everyone will have to deal with higher taxes.
However, education makes up 67 percent of a typical property tax bill. Riley said that this number makes it easy for people to point fingers at the district, but those taxes also fund higher education. The portion that SD6 receives is based on enrollment.
High school enrollment is continuing a downward trend since 2007-2008 from 878 students to 673 projected this year.
Zuffelato said that low enrollment is likely to continue.
Elementary enrollment has had a similar downward trend since 2003-2004, however in 2012-2013 the numbers increased slightly.
Members of the board said that 83 percent of the budget revenue controlled by the state. The other 17 percent of the budget comes from successful mill levies funded by property taxes.
The general fund deficit for both high school and elementary was at $293,731. This was offset by the special education tuition fund levy and an employer health insurance premium holiday.
The health insurance holiday is possible because of the district's good claim history. The district had surplus reserves for future claims, so much so that they were able to have a holiday from paying into the reserve, Zuffelato explained.
He said the district redirected those funds from insurance and put them back into programs for the schools.
"This year we've enhanced the ability to purchase assessment tools," Zuffelato said.
In the budget for both high school and elementary are funds for teacher evaluation and STAR assessment and food service improvements.
Also, new laptops and maintenance to the junior high gym floor, parking lot and roof are budgeted for the elementary schools.
The high school budget includes metal shop improvements and an increase in Internet bandwidth.
However, the board is concerned for next year.
Zuffelato said by 2017 the deficit would be $181,825. The levy passed in 2014 and the insurance money will already be used. In expectation of the shortfall, they are looking for ways to reduce costs.
In other school board news:
* Montana Gov. Steve Bullock is visiting the high school on opening day, Sept. 3.
* The board approved new employees: Ruder Elementary kitchen helper Amanda Treat, assistant boys soccer coaches Chris Nagel and Jake Hall, assistant cheer advisor Kylie Rocker and junior varsity boys' basketball coach Bill Coleman.
* People with a relationship to the timber industry can apply for one of five $1,000 scholarships to use at college within a year. They will be awarded by lottery Oct. 3. The deadline is Sept. 1. The application is available at www.montanalogjam.org or call 406-260-8268.
* Board Member Larry Wilson had concerns about the school emergency training and preparedness. Superintendent of Schools Steve Bradshaw said he'd talk to local law enforcement.
* The district has a lack of qualified substitute teachers. The board proposed a substitute orientation this fall to inform local residents interested in the program. They are looking for those with high school diplomas and especially certified teachers.
The next board meeting is Monday, Sept. 14 at 7 p.m. in the School District Six Board Room.