Residents in the Gillett School District will be asked to dig a little deeper to support their schools, to compensate for waning state assistance.
Individuals at Thursday’s annual meeting will be asked to support a 16 percent jump in taxes — a proposed levy of $3.039 million, up from $2.610 million last year.
The tax rate is calculated at $11 per $1,000 of equalized value, meaning residents with $100,000 of property will pay $1,100 for the school portion of their property tax bill, according to school district projections. A year ago, taxes were $953.
“As your state aid goes down, your local support and mill rate are going to go up. It’s just the balance that happens,” School Superintendent Todd Carlson said.
General state aid for Gillett is down 9 percent, a loss of $366,000 from one year ago, according to estimates released by the DPI. The school district is on track to receive $3.7 million in aid for 2013-14, compared with $4.066 million for 2012-13.
Gillett will also lose federal dollars and anticipates a 60 percent drop from the $531,000 it received a year ago, to $207,000.
“The biggest one we worry about is the state, because more of our budget comes from state aid,” Carlson said.
According to the Department of Public Instruction, schools will share $4.342 billion in general school aid, a 1.1 percent increase from last year. Yet 56 percent of the state’s public school districts (239 of 424) will receive less aid than they did in 2012-13.
Aid is based on audited school district data from the 2012-13 school year, which includes enrollment, property value and eligible expenditures.
State funding and property taxes are the two main methods of support for the school district, and with the decrease in funding, taxes will make up the difference, Carlson said.
Tax relief isn’t as simple as “tightening your belt,” he added.
The district’s budget proposal is within the revenue limits set by the state, which shows it’s not overspending, Carlson said.
In its preliminary budget, the district proposes expenditures of $7.348 million in its general fund, up 1 from last year. The district estimates using $74,000 from its reserves to help balance the budget.
A year ago, the district proposed a $334,000 draw from its fund balance, but several variables left the district with an additional $167,000 in the account instead, putting the total at $2.534 million, according to unaudited records for 2012-13.
“Costs didn’t come in the way they were projected, and things shift. That’s what happens with a preliminary budget,” Carlson said.
While the preliminary budget is changeable, one certainty for Gillett is a loss of poverty aid from the state for the next two years. The district, by 2 percentage points, missed qualifying for poverty relief as it has in past years. Gillett reported 48 percent of its students are eligible for free and reduced meals; poverty relief aid is distributed to districts with at least 50 percent of students eligible.
“I do believe we’re a poverty area, but I don’t think all the information was gathered and everything was turned in, so we can do a better job of that,” Carlson said.
He said one way to provide relief to taxpayers is to build up the district’s tax base through economic growth.
“If we as a school can do our job to be a good school and attract more families … or more businesses to come in to broaden out that tax base, that would help,” Carlson said.
Tax relief will also come in 2015, when the district will be debt free.
Carlson, hired by the school district in August, said one of the reasons he accepted the position was to guide the district through its financial struggles.
“I think I can bring some experience to get us through that,” said Carlson, a Gillett graduate and resident of the district. He previously worked as school superintendent in Shawano and Suring.
“This school is a very good school, and I think the students are getting a fantastic education. I think our state report cards show that, but we have to help the school continue and be a strong part of this community,” he said.
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