Ultimate impact on tax rate yet to be determined
By Ed Nadolski
Editor in Chief
The Burlington Area School District’s Finance Committee began combing through its preliminary budget for 2017-18 May 1 by examining revenues and fees.
The budget currently predicts an increase in enrollment as well as 2.27 percent increase in the tax levy.
Whether that will actually result in an increase in the property tax rate will not be determined until October when final property valuation numbers are available. At this point, area valuations – which are likely to increase based on the expanding economy – included in the budget proposal are based on the current school year’s numbers.
Monday’s meeting was one of several that will lead up to the formal passage of the budget at the June 12 School Board meeting. The actual budget will then take effect July 1, according to Supt. Peter Smet.
He said the Finance Committee will review the expenditures included in the budget proposal at its May 22 meeting and will tie up any loose ends at the June 5 meeting. If all goes according to plan, the committee will then make a recommendation to the board on the budget, Smet said.
Perhaps the biggest positive impact on next year’s budget, members of the Finance Committee were told, will be an increase in per pupil aid proposed in Wisconsin Gov. Scott Walker’s budget.
According to the district budget presented by Business Manager Ruth Schenning, the district is anticipating aid of $450 per pupil, which is a $200 per pupil increase over the current year. The budget has slated per pupil aid to increase from $815,500 this year to $1.45 million for 2017-18.
That number will be offset somewhat by a predicted decrease in general state aid to the district – a decrease of nearly $400,000 from $15.7 million to $15.3 million.
Schenning explained the decrease in general state aid is determined by a complicated formula that takes into account enrollment and district property values.
With the district likely to experience increases in both factors next year, the general aid decreases with the rationale that corresponding increases in per pupil aid and tax base will offset at least some of the decrease, Schenning said.
Overall, the district is predicting that revenues will be down about $190,000 from $38.3 million this year to $38.1 million for next year. Because those figures are currently applied against last year’s property valuation, a corresponding tax levy increase is required. That increase could be driven down or eliminated by a higher overall property value for 2017-18, but that won’t be revealed until October.
The district’s prediction of 41 more students in 2017-18 ends three straight years during which enrollments declined.
Officials estimate a total district enrollment of 3,160 next year, compared to 3,121 this year. The enrollments for the three previous years, in descending order were: 3,212, 3,243 and 3,300.
Although officials haven’t yet formally discussed expenditures, figures presented Monday show the district is anticipating a 1.26 percent increase in salaries for staff and a 12 percent increase in benefits costs mainly due to an increase in health insurance costs.
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