NB school levy explained at hearing

By Barbara Brown
Only two people were in attendance at the truth in taxation hearing for the North Branch school district Dec. 3.
Finance director Randi Johnson briefed the board, administrators and the residents about how the districts taxing plans differ from local, county and state governments.
The schools run on a July to June fiscal year while the other government bodies in the state use a January to December fiscal year.
Therefore, the levy that was discussed last week will apply to the 2003-2004 school year, Johnson said.
Unlike some other government budgets, money in different line items on school budgets can not be moved around to make up for shortfalls in other sections.
Johnson said this yearís school budget will be covered by money from the reserve accounts, but next school year cuts in programs, personnel and services are probable as the district will face a significant deficit.
Johnson told those at the meeting that the district ranks 323 of 345 school districts in the state for spending per student.
The district still is able to offer a wide variety of services, Johnson said, showing that the district is working frugally. ìWeíre way below average,î Johnson said. ìOur spending is low and I think that is evidence that we run an efficient operation.î
Substantial changes in the last two years on the legislative formula for school funding have impacted the way school districts have to work out their budgets dramatically.
Two years ago, property tax income made up 17 percent of the districtís budget, but in the current year the taxes will pay only 7 percent with the majority of the balance ñ 79 percent ñ expected in state aid. That is, if the legislature does not once again shift its formulas for school funding due to the stateís pending $5 billion deficit.
Increases in the school district budget that will affect how the tax rate looks on individual tax bills include the $27 million building bond which passed in November, an increase in the capital lease line item to pay for renting at the Trinity Lutheran Church building and a $93,000 increase in crime prevention spending.
Johnson said crime prevention levy authority was increased this year by the legislature because of new concerns raised by the September 11 terrorist attack and because of increased incidents of school violence.
A $103,000 increase in health and safety spending will pay for improvements to the air quality in the high school and middle school buildings.
Overall, the schoolís levy is up $1.8 million for the 2003-2004 school year.
A home valued at about $150,000 in which the assessed value did not change over last year, could be taxed about $212 over last year.
Johnson reminded residents that their tax bill most likely will show an increase in the school district section when they arrive in spring. She said the notices residents received recently did not include the building bond levy (Question 1 on the November ballot).

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