TRIPP-DELMONT SCHOOL DISTRICT
Public Information Meetings $400K Opt Out
Welcome Thank you for coming tonight, it shows that
you are interested in our District and our students’ educations
This is an Informational meeting tonight – no Board action will be taken
This is not a time to debate, it’s a time for us to present information and for you to ask questions after we finish presenting
This is not a time to question past decisions as we need to move forward from where we are today
Ground Rules We will stay objective and factual and present
information concerning the New Opt Out
If you have personnel or staff concerns, curriculum or school operation concerns this is NOT the time nor place to discuss that
The Board will be collecting written questions to be compiled into a Q+A handout for other sessions
Repeated questions will be answered once, with an indication of how many people asked that same question
Things to Know:
First, the Board and administration have been working hard to find budget efficiencies:
1 teacher FTE cut
1 paraprofessional FTE cut
Four day school week efficiencies with hourly wages, utilities and transportation
Cuts to general supply budgets
Other thoughts:
Combined classrooms – not at this time, but we haven’t completely ruled it out. (Parents don’t want it)
Teacher ratio: Impossible, random number. 80% of SD school districts do not meet it
We have been accountable to our public: Opt Out
Four Day School Week
Budget Efficiencies
Agenda
We will explain our current Opt Out
We will explain the need for a new Opt Out
We will explain the impact of the new Opt Out
We will present election information and ballot information
We will ask for your written questions. Please use the cards for questions-and again, no open mic
Our Guiding Principles
First obligation is to provide the best education experiences and best quality education possible for our students
We are transparent and responsible for communicating our situation and needs to our communities and stakeholders
We are responsible to use the resources generated in a wise and prudent manner while still fully providing for the needs of our students
In Addition
We believe it would be irresponsible for the Board and District and stakeholders to provide only the minimums in terms of educational opportunities for our students
#1 Driving Force
Any and all decisions will be made with our students’ best academic/educational needs in mind
We will continually ask ourselves, “What is best for our students?”
Definition/History
Opt Out: (legal definition)
If a school district cannot operate on the revenues generated by the General Fund levy and monies from state aid, then the school district may choose to “opt-out” of the GF levy limitations
The GF pays for salaries/benefits, instructional supplies, operational expenses and other supplies
State Opt Out Data
150 K-12 School Districts in SD
64 K-12 School Districts have Opt Outs
42.67% of Districts have Opted out
Avg. Opt Out amount = $402,734
Recent TD History
T-D Opt Outs
2008-2010: $225,000 (3 year)
2011-2012: $225,000 (of $300K-7 yrs)
2013: $265,000 (of $300K)
2014-2017: $300,000
How Did We Get to This Point?
1. Years of Declining Enrollment
2. Changes to School Funding Formula/School Funds
Factor 1: Declining Enrollment
Factor 2: School Funding
FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
State Aid $4,528.80 $4,642.02 $4,804.60 $4,804.60 $4,389.95 $4,490.92 $4,625.65 $4,781.14 $4,876.76
$4,100.00
$4,200.00
$4,300.00
$4,400.00
$4,500.00
$4,600.00
$4,700.00
$4,800.00
$4,900.00
$5,000.00
PS
A
State Aid
FY10 + FY11
Frozen @
$4,805
FY16
$4,877
FY08
$4,529
FY12 – Big Cut
$4,390 [-$415]
FY 14
$4,626
Factor 2: School Funding
FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
Total % Increase 3.76% 2.50% 3.00% 0.00% -8.60% 2.30% 3.00% 3.36% 2.10%
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
Pe
rce
nti
le
Total % Increase
FY08
3.76%
FY11
0%
FY12
-8.6%
FY14
3%
FY16
2.1%
New Opt Out
$400,000 every year for 5 years –
Why 5 years?
The Legislature is going to study the new funding formula for 3 years, then review it in year 4
Gives us time to see the results of the Legislative study and any potential changes they may make to the law
New Opt Out and “Overlap” Year
Overlap: Tax year Jan 1. – Dec. 31, 2018
District will receive Current Opt Out taxes plus New Opt Out taxes for that year
Paid in two installments each year
Handout #1 Opt Out Taxes based on current
Valuations and Levies
New Opt Out Tax
What is the difference between a $300,000 Opt Out and the new $400,000 Opt out on my taxes?
Generally, it will increase your current Opt Out tax by one-third
Let’s see an example…
Handout #2 Tax Bill - House
The Overlap Year
Rationale for doing an Overlap
Board’s goal was a 5 year Opt Out
$400,000 Opt Out with Overlap achieves that goal
An Overlap saves the taxpayers money over the five years
Without an Overlap, the Opt Out would have been much larger - $800,000 for 5 years
Let’s see examples-
Why Choose an Overlap? $43,000 House @ $400K Opt Out with Overlap
Taxes: $87.03 x 4 years = $348.12 plus overlap year of $152.32 = $500.44 in taxes paid for 5 years
$43,000 House @ $500K Opt Out , no Overlap
Taxes: $108.77 x 5 years = $543.85
This puts us $1M in debt
$43,000 House @ $600K Opt Out, no Overlap
Taxes: $130.58 x 5 years = $652.90
This puts us $500K in debt
Handout #3 – Ag Land Tax Bill
Good Dirt – Ag Land example
120 acres @ $400K Opt Out with Overlap
Taxes = $196.99 x 4 years = $787.96 plus overlap year of $344.78 = $1,132.73 in taxes for 5 years
$120 acres @ $500K Opt Out , no Overlap
Taxes = $246.20 x 5 years = $1,231
Can’t make it to SY22
$120 acres @ $600K Opt Out , no Overlap
Taxes = $295.56 x 5 years = $1,477.80
Can’t make it to SY22
Handout #4 – Commercial Bill
Commercial Example
$66,000 Business @ $400K Opt Out with Overlap
Taxes = $260.73 x 4 years = $1,042.92 plus overlap year of $456.33 = $1,499.25 in taxes for 5 years
$66,000 Business @ $500K Opt Out , no Overlap
Taxes = $325.87 x 5 years = $1,629.35
Can’t make it to SY22
$66,000 Business @ $600K Opt Out , no Overlap
Taxes = $391.20 x 5 years = $1,956.00
Can’t make it to SY22
Remember -
The Board wanted to go 5 years-the Legislature is going to study the new funding formula for 3 years, then review it in year 4
The Board wanted to see if there were going to be changes in those years
Without an Overlap in the Opt Out, the amount would need to be $800,000 to reach that goal and have the budget remain in the black
Let’s Take a Closer Look at an $800K Opt Out on Taxes…
$43,000 House @ $400K Opt Out with Overlap
Taxes: $87.03 x 4 years = $348.12 plus overlap year of $152.32 = $500.44 total in taxes paid over 5 years
Same house, @ $800K Opt Out , No Overlap
Taxes: Current $147.9 x 2.666 (increase) = $174.06/year x 5 = $870.30 in total taxes paid for 5 years, an increase of $369.86
Ag Land example – $800K
120 acres @ $400K Opt Out with Overlap
Taxes = $196.99 x 4 years = $787.96 plus overlap year of $344.78 = $1,132.73 in total taxes paid for 5 years
Same land, @ $800K Opt Out , No Overlap
Taxes: Current $147.78 x 2.666 (increase) = $293.98/year x 5 = $1,969.90 in total taxes paid for 5 years
Commercial example – $800K
$66,000 Business @ $400K Opt Out/ Overlap
Taxes = $260.73 x 4 years = $1,042.92 plus overlap year of $456.33 = $1,499.25 in total taxes paid for 5 years
Same business, @ $800K Opt Out , No Overlap
Taxes: Current $195.60 x 2.666 (increase) = $521.47/year x 5 = $2,607.35 in total taxes paid for 5 years, an increase of $1,108.10
Opt Out Election
The Election for the Opt Out will be Tuesday, May 2
Polling places at Delmont City and Tripp City
Voting times are 7 a.m. to 7 p.m.
Must be a registered voter in the T-D School District
Must live in T-D School District
Opt Out Election
Absentee applications and ballots are available now in the school Business Manager’s office from 7:30 – 3:30
If you vote on Election Day or Absentee, you will need a photo ID
If you are not registered to vote, you cannot vote
Opt Out Election
Be heard!
You want your voice to count!
VOTE!
Questions
You’ve heard our information, please submit your questions in writing
Remember, there is no open mic – this is an informational meeting
Please hand your questions to the runners-please only new questions.
Vote on the Facts
Be careful of the rumors and misinformation
Tax information presented is general – a guide – for more specific information, see your County Assessor
Thank you for coming tonight!
Please vote
May 2!
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