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Lincoln County Board votes 4–1 to opt out of House Bill 581, citing projected revenue loss
Summary
The Lincoln County Board of Education voted 4–1 to opt out of House Bill 581, citing a district template that showed an estimated $338,000 revenue loss under the law; the board set three required public hearings and will file a resolution as required by statute.
The Lincoln County Board of Education voted 4–1 to opt out of House Bill 581 after hearing a legal overview and district financial estimates that administrators said showed material harm to the school budget.
At a board meeting in January, the board’s attorney, M Curry, told trustees that House Bill 581 “limits the amount of increase in ad valorem taxes that a board of education can actualize in any one given year” and that the inflationary rate used to compute the limit would be set by the state tax commissioner and could be CPI or another measure. He said the law contains a one‑time opt‑out decision that must be finalized by March 1, 2025, and spells out detailed public‑hearing and newspaper‑notice requirements.
Board members asked how the formula would interact with local budgeting tools such as annual rollback decisions and millage adjustments. Superintendent Howard Gunby summarized district modeling presented earlier and said the example template showed the district would have lost $338,000 in the previous year "had we been in House 581," which he said factored heavily into his recommendation to opt out.
Mr Madison moved to opt out and Mr Mongre seconded; the motion passed 4–1. The board instructed staff to schedule three public hearings (one between 6:00 and 7:00 p.m.), run the legally required notice in the Lincoln Journal and on the district website, and file a resolution with the Secretary of State as specified by the statute.
In discussion, the attorney warned trustees the law “takes away a lot of local control,” and trustees expressed concern that the statute is vague on key points — including which inflationary measure will be used and whether districts will have alternatives such as sales tax options that counties may use. Board members explored trade‑offs: using reserves, raising millage within constitutional limits, or reducing programs and positions.
The board’s decision means the district will follow the opt‑out process and hold required hearings before the March 1, 2025 deadline. Officials said more details, including hearing dates, would be published on the district website and in local notices.
