Letter from the Superintendent - September 2014
Letter from the Superintendent
September 2014
As we begin this school year, the budget season looms for all school superintendents across the state. We all have different scenarios to deal with. One common scenario for many rural school districts is the fact that valuations, especially agricultural land, has risen rapidly over the past few years, with this year seemingly the highest of all. It is a double-edged sword for districts. For districts that have been battling with levy limits and not being able to cover expenses, it is vital that valuations rise to allow for districts to cover costs. There are districts that borrow money each year to cover costs (these costs are mandated, by the way.) It is a very bad situation to be in, living month to month not knowing if you can make payroll or cover the other bills of your district. We have not been there and don’t want to be there. You need to prepare for unexpected costs and be prepared for the worst case scenario.
On the other end of the spectrum is the land owner, dealing with rising tax bills while their operating costs rise, as well. Yes, the land is more valuable than ever. You hope that your land does rise in value, but when it comes in big jumps it makes paying the bills just that more unpleasant. One thing you don’t like to do as a district is have wild swings in the tax levy where taxpayers don’t know what to expect. There is no question, however, that the levy itself will drop dramatically this year. At this writing we are still discussing the final budget for the 2014-2015 school year. We know that we have staff pay raises, insurance increases, fuel volatility, electrical rate increases, huge food price increases, and other annual supply increases that we have no choice but to pay. We have projects like bathroom updates and heating and cooling issues that are currently in progress and must be done. There is no choice. Again, you try to plan ahead, putting funds away to deal with these things, and a smart district does just that. This school board has been very good at making sure that we can operate without issues that other districts run into. That is a very, very good thing.
This is my ninth budget season, and it is definitely a unique one. One must be very careful that while you respond to the burden that land owners carry, I do my job as a school superintendent to protect the financial position of the school district and provide the best possible situation for our students. That is the bottom line. Taxpayers will see a much lower levy, and the tax rate for property valued at $100,000 (a common comparison method) will drop dramatically. The final overall tax request has not been finalized, but I feel that this budget will be responsible and show an effort of fiscal responsibility that ensures that our district runs efficiently, safely, and we can look forward to many years of educational stability.
Sincerely,
R. Todd Porter
Superintendent