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Board reviews tax-cap calculation; members lean toward a 2% levy increase
Summary
District director Bill Darcy presented tax-cap math and three budget scenarios. Board members discussed 0%, 1% and 2% levy increases and expressed support for a 2% increase to fund investments and staff retention.
The district's director of capabilities, Bill Darcy, outlined the tax-cap calculation, allowable levy growth and three budget scenarios for the coming year.
Darcy explained that the allowable levy increase for the year is 3.67 percent and that one component of the formula is the tax base growth factor set by the state department of taxation. He said the allowable growth factor remains the lesser of the CPI or 2 percent and that this year it equates to 2 percent (CPI being just under 3 percent).
Using conservative assumptions for state aid, transportation and federal reimbursements, Darcy presented three scenarios: a 1 percent levy increase (yielding about $181,000 new revenue and a roughly $5 per month tax increase on a $150,000 assessed property), a 2 percent levy increase (about $362,000 new revenue and about $7 per month) and a 3 percent levy increase (about $543,000 and roughly $10 per month). He said a 0 percent levy increase would be difficult given identified needs.
Board members discussed priorities and trade-offs. One member said a 0 percent levy was attractive to taxpayers, but several members favored a 2 percent increase to fund investments in staff, facilities and programs. By voice, multiple members indicated support for 2 percent as a pragmatic choice to address inflationary costs and continuing needs while avoiding deferred maintenance.
Darcy noted that state aid estimates may change before the final budget and that capital exclusions, pilot estimates and carryover from prior years affect the calculation. The tax-cap report must be submitted to the Office of the State Comptroller by March 1, the director said.
