District Local Revenues
Tied to Inflation
Every December, the process to collect the majority of revenues that fund the district’s operating budget begins with a tax levy request. Local property tax revenues fund 86% of the district’s operating budget.
The tax levy is the total amount the district requests from the county in local property tax revenue. The total amount is limited by law to the rate of inflation and new property development. The inflation rate, known as the Consumer Price Index, is a measure of price changes in consumer goods and services set by the Bureau of Labor Statistics. This year’s CPI of 2.3% is 0.4% higher than last year.
Chief School Business Official Jessica Donato said that because new property growth is unknown at the time the levy is filed, the district overestimates its value in order to capture all potential revenues. This allows the district to prepare for future unknown expenses such as insurance premium increases, unfunded mandates, maintenance and repair of facilities, increased enrollment, or changes in state funding, to name a few.
The Board of Education approved the levy request of $39 million at the Dec. 15 meeting. Mrs. Donato predicts the tax extension, how much the district will actually receive, will be about $38.5 million, which is a 3.63% increase from the prior-year tax extension. The tax rate, which is used to calculate an individual’s property tax bills, is based on the district’s total value of property in the district.