Okaloosa board hears explanation of required local effort, millage and budget advertising

School district finance staff and board members discussed the preliminary and tentative budget and the required local effort (RLE) and millage during the June 23 workshop.

Miss Perry explained the required local effort is a state'provided figure calculated under the Florida Education Finance Program and that the district expects the RLE figure from the state around July 19. She and others noted a common public confusion: because property values have risen, a lower millage rate can nevertheless produce a higher tax bill for property owners. "So sometimes it's not that the actual we voted to change the local effort or the millage, but that they go back and reassess the property values," a board member said. Perry replied that the state gives the required number and that if the district does not levy the required local effort it cannot receive the associated state funds.

Board members and staff also discussed the components of the local millage package: the required local effort, the discretionary operating millage (0.748 mentioned in discussion) that districts typically levy, and the 1.5 mills for capital. A board member asked whether the discretionary operating millage can be changed; staff explained it can be decreased but the district was at the maximum permitted level. The board also discussed the district's approximate local property tax collections (figures discussed as "just under $170,000,000" for local property collections supporting the district).

Miss Perry said the district will advertise proposed preliminary and tentative budgets and millage rates as required, noting the state'provided calculations can make an advertised increase appear even when the RLE goes down. No formal action on the budget advertisement occurred in the workshop; the discussion was informational in advance of the required July advertising and public hearings.