BLUE HILL SCHOOLS IS LOWERING THE TAX LEVY FOR 2023-2024!
At their September 18 meeting, the Blue Hill Community School Board will vote to lower the district's property tax levy by 12 cents. The 2022-2023 Tax Levy was $0.97 per mill (.94 General fund and .03 Building Fund). The 2023-2024 proposed tax levy is $0.85 (.82 General Fund and .03 Building Fund).
HOW CAN THE LEVY BE LOWERED SO MUCH?
Governor Pillen proposed, and the Legislature passed, three bills that significantly affected public school funding and created the chance to lower property tax rates for the Blue Hill district.
LB 818- Established the $1 Billion Education Future Fund. This fund is to help fund public schools and provide property tax relief.
LB 583- The Education Future Fund will provide public school districts with Foundation Aid ($1,500 for each student). Blue Hill Community Schools will receive $439,507 in Foundation Aid for the 2023-2024 school year. Also, LB 583 allows for higher reimbursement rates for special education expenses. This change in reimbursement of costs is estimated to save the Blue Hill district $284,000.
LB 243- imposes new limits on a school district's ability to levy property taxes. In particular, LB 243 now implements a new "soft cap" established at 3% over the previous year's tax request. It is referred to as a "soft cap" because if a district feels it needs to go over the 3%, it could, with a 70% vote of the board voting in favor of the increase. If the Board votes in favor, the Board could go as high as a 7% increase in tax asking. In context, over the last 14 years, Blue Hill Schools has averaged an annual increase of 2.13% in tax asking from the previous year.
The Blue Hill Board has no plans now or in the future to raise the tax request and exceed the 3% cap. However, no one knows what state funding will look like in the future. As a result, at the September 18 meeting, the Board will vote on a resolution allowing the district to maintain the potential to access more than 3% in future budgets if determined necessary.
WHY WOULD THE DISTRICT NEED TO PASS THE RESOLUTION?
The Board's desire to provide as much tax relief as possible by going down 12 cents is not without significant risk. The resolution will leave options available to the Blue Hill Board for future years if extra tax funds should be needed.
Right now, the state of Nebraska has funds to provide to schools, but much of the surplus funds the state is holding is due to the state receiving COVID Relief Funds. If the surplus is gone and not replaced, the history of the unicameral has proven to be that when state revenue falls short of projections, cuts in funding to public education are first on the chopping block. Question: What happens when the state doesn't uphold its end of the bargain of the financing for public schools? Answer: All Nebraska districts must rely more on property taxes.
The new Foundation Aid ($1,500 per student) is only guaranteed for the next two years. The Special Education rate increase is actually a return to what it was before they were cut several years ago to help that year's state's budget.
The resolution protects the district's tax-asking authority and makes it a local decision.
Preparing to meet our future needs or make up for changes in state funding is a way to be fiscally responsible to our taxpayers, students, and school district. Passing the resolution is transparent and straightforward. No current or future taxes will be raised without all state-mandated public notifications and opportunities for public input.