Lincoln County school board hears push to adopt half‑mill rollback to protect $575,000 in Equalization funds

The Lincoln County Board of Education held a second public hearing on proposed millage and bond rates, where staff recommended a half‑mill rollback as a compromise to preserve state Equalization aid while limiting the immediate tax impact on homeowners.

Mr. Norman, a presenter for the Lincoln County Board of Education, told the board the district's general fund is the primary operating fund, with local tax revenue estimated at about $5.3 million and an approved operating deficit of roughly $300,000 for the year. He said the county's five‑year tax digest rose nearly 14% (from about $367 million to $421 million), producing a rollback calculation that staff reported as 13.591 mills. He warned that dropping the millage below 14 mills would forfeit state Equalization funds; staff cited $575,000 in Equalization payments the district received this year and said that amount would be at risk if the board chose a full rollback below 14 mills.

The presentation set out four scenarios — no rollback, a half‑mill rollback, a full rollback and a 1‑mill rollback — and used a 97% assumed tax collection rate to estimate revenue under each option. Staff presented examples of taxpayer impacts: for example, a home whose assessed value rose from $75,000 to $100,000 would see about $10.90 more per month under the proposed numbers, while other examples illustrated how the difference varies with property value.

During board questions, members and staff clarified that some deficit figures referenced in discussion appeared in different contexts (one exchange contrasted a $311,000 figure with a $221,000 figure), and staff said they could provide further line‑item detail. Staff also reviewed the QBE (Quality Basic Education) schedule for state funding, reporting roughly $9.9 million in state funds for teachers, administrators and transportation, and noted a bond fund payoff date of 2037 and that bond funds are restricted to debt service and cannot be used for operating costs.

Public comment focused on the local tax burden for seniors, teacher supplements and district capacity. Julie Livingston, a resident, urged the board to retain at least a half‑mill rollback "to get the $575,000" in Equalization and described the effect on people on fixed incomes: "my taxes have increased 131%" over five years, she said, and asked whether Lincoln County offers senior exemptions comparable to neighboring counties (she cited Richmond County and Columbia County practices). Staff confirmed Lincoln County receives federal Title I funds and said the district also typically receives about $250,000 in Impact Aid for federally owned land in the county.

Residents and board members discussed the limits of local authority, noting that assessed value growth increases apparent tax bills even when the millage is lowered, and that consolidation with neighboring systems — while suggested by some commenters as a way to reduce costs — involves tradeoffs and state policy constraints. Commenters also pressed transportation issues: staff said the district has variable bus loads, faces driver shortages that sometimes require double routes, and has reduced fuel costs by switching from diesel to propane.

No formal millage vote was recorded at the hearing. After public comment and questions, the board took a voice motion to adjourn; the motion was seconded by Mr. Madison and carried. Staff said they would provide more detailed breakdowns on teacher supplements and other line items on request and that the board would consider the rollback options before final action.

The board's next procedural step is to set a millage rate at an upcoming meeting or advertised hearing; staff emphasized the tradeoff that lowering mills below the 14‑mill threshold could forfeit Equalization funds, while keeping mills higher preserves that state aid but raises local bills.