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Treasurer presents cautious five-year forecast; board discusses levies, phased levies and earned-income tax option
Summary
The treasurer presented a five-year forecast showing flat revenues, rising personnel and student-service costs, and potential health-insurance increases; board discussed options including a standard property levy, a phased larger levy and an earned-income tax to stabilize funding.
The district treasurer presented a five-year financial forecast that projects flat revenues while personnel costs, student-specific services, transportation and utilities continue to rise, prompting discussion of revenue options to close an ongoing gap.
Treasurer Mister Morrow said investment income and state reimbursement for high-cost student services have helped, but overall revenue is essentially flat and property valuation increases reduce tax rates rather than providing extra operating revenue to the district. He highlighted a favorable health-insurance renewal for 2024–25 but warned of a potentially unfavorable renewal for 2025–26 ("very unfavorable" and projected at over 10%).
Nut graf: With expenses rising — including step increases, benefit cost growth and student-specific purchase services — and uncertain state funding, the administration presented three revenue options for board consideration: a standard property levy (similar to the district’s historic three-year cycle), a phased operating levy that phases in a larger total millage over multiple years, and an earned-income tax on residents’ wages.
The treasurer said historically the district has asked voters every three years for operating levies and that, under the current forecast, a similar levy would likely be required again in approximately three years to maintain services. The phased levy option would ask for a larger total amount (example used: 10 mills) phased over several years to reduce the immediate community burden. The earned-income tax was modeled at about 1 percent in preliminary work; the administration said it would likely be at least a five-year revenue source and that full collection takes time, with a multi-year ramp-up before full receipts are realized.
Board members asked about senior and Social Security relief under an earned-income tax and requested more modeling. The treasurer said he would prepare scenarios showing how long different levy structures might sustain operations and the likely impacts on taxpayers.
Ending: The presentation concluded with the administration proposing further analysis and a follow-up discussion to present concrete levy or tax scenarios for board decision-making in the near term.
