Voters in the Ovid-Elsie School District will be asked whether or not they want to renew the district’s operating millage on February 26, 2013.
The 17.9694-mill, eleven-year millage, if passed, will collect an estimated $640,000 in its first year (2014).
The millage provides basic funding for the school district. When the state calculates its per-pupil funding, it assumes it receives its full millage revenue, whether it does so or not. The taxes are levied against non-homestead properties, such as business and industrial properties, second homes and some non-exempt agricultural property.
It specifically does not affect the taxes levied against a taxpayer’s primary home (which has a homestead exemption).
This proposal differs from recent years in that it has typically been put up for restoration. The renewal would allow the district to extend its current tax levy, however it is not a new tax.
The operating millage provides critical revenue for the district.
The nearly $640,000 it brings in equates to approximately 5% percent of the district’s revenue in its annual budget. It’s especially important in light of the cuts the district had made for the past two years. Even with the cuts, the district still used more than $1 million of its fund balance last year and is projected to use more than a half million dollars this year.
If the District loses another $640,000 on top of the current deficit, the District will really be in trouble.
The Board has a finance committee in place to review the budget and to make further recommendations to the Board.