Posted: 8/23/07
Board considering
operating referendum
as it faces shortfall
The shortfall will require a budget reduction of up to $650,000. "That's gonna be a chunk of change to cut next year, that's programs and class sizes," said Zakrajsek. The idea of an operating referendum had been floating around the board room since the new board members started their positions in January. The school board previously directed the administration to look into a operating referendum and to gather any information. Zakrajsek presented information on Monday that was given to her by Ehlers and Associates out of Roseville, a debt computing and issuing company. Zakrajsek explained that Milaca is one of only 40 Minnesota schools that are operating without an operating referendum. "That result has come about because of good budgeting and managing," she said. "But Milaca has to wake up to the fact that we are moving into a large school system. The one thing that has been in our favor is that we (the school) are on one site." But the school board decided at its July 30 meeting to recommend expanding the school by building a new middle school on land outside of the current site. The operating referendum the school board received information on did not include the operating expense of the future school. Its purpose is just for the expense of operating the school the residents already own for fiscal year 2008-2009. Zakrajsek and business manager Mary Plante said the operating referendum would have to be at minimum $300 per resident student At $300 per pupil unit, it would generate $531,329. "We will have to cut $550,000 to $650,000 next year, which is far and away more than we have been cutting, if we don't do a referendum," said Zakrajsek. She went on to discuss the reasons of the shortfall. It seems the anticipated amount of income that can be expected from the legislature is going to be lower next year than it was this year. Add to that the inflation factors and increased numbers of students to teach, and the school is facing a short-fall in the budget. The board already cut the school budget by $316,000 this spring and it is facing a $32,000 budget shortfall before the added $24,000 kindergarten section the board decided upon at the Aug. 13 meeting. The numbers of potential tax amounts payable for landowners in 2008 were looked at by the board. The size of the referendum looked at by the board started at $100 per student and went up to $300 per student. Board member Jody Chambers asked if it was wise to only tax the residents for the referendum in the amount needed for next year when the board had already decided to expand the school and would need another referendum at that time. Chambers was interested in a $400 or $500 per student referendum. The $400 referendum would generate $741,000 for the school. A home valued at $150,000 would be taxed at $113 per year. If the home is valued at $200,000 the tax would be $151. The $500 per pupil unit referendum would generate $952,000 for the school. A home valued at $150,000 would be taxed at $141 per year. A value of $200,000 would be taxed $188 per year. Zakrajsek went on to point out that the average for school referendums is about $630 per pupil unit and that 88 percent of schools operate using one. The tax implications to the landowner residents within the Milaca School District, in most cases, would be under $200 per year. Agriculture property would only pay taxes on the value of the house, garage and one acre. Seasonal recreational property (cabins) would not be taxed for the referendum. The board members also received a time line from Ehlers and Associates to follow so the referendum can be placed on the November election ballot. No action was taken at this meeting. The board met again Monday, Aug. 20 to consider the referendum and start the process if the majority of the board approve. At the Aug. 20 meeting the board again took no action, instead they decided to call a special meeting sometime in the future, but before the deadline of Sept. 14. Comment from ellie boyle, 8/27/07 sell the worthless property you bought and leave us alone!!!!!! Mille Lacs County Times
225 2nd Street SW
Milaca, MN 56353
Telephone: 320-983-6111 Fax: 320-983-6112