Voting & Budget Information
Due to Senate Bill S1701, the new budget cap law, local taxpayers across the state have received refunds on the school portion of their local tax levy. This new law affects every school district’s budget by:
- Reducing the overall budget cap to 2.5% or the CPI ( Consumer Price Index also known as cost of living), whichever is greater;
- Limiting the Spending Growth Limitation Adjustment for courtesy busing;
- Limiting the per pupil administration cost so that it does not exceed the lower of the 2005-2006 cost or; the regional average.
- Requiring the reduction of surplus and the use of those funds for short-term property tax relief from 6% to 3% in 2004/05 down to 2% in 2005/06;
- Placing restrictions on second ballot finance question in school elections; and
- Requiring state approval of certain line-item transfers within a local school district budget.
In the past, the State allowed school districts to carry a 6% surplus and were required (mandated) to get state approval should their surplus fall below 3%. Since schools only receive enough money to fund their advertised budgets, the surplus allowed districts to use the funds for certain unforeseen expenses which could occur. For example, the district budget is developed in December, a time where the enrollment for the next school year is not yet known. If the district was required to hire another teacher due to increased enrollments, surplus funds were able to be used to support this need. The same would happen if a special needs student moved into the district that required an out-of-district placement or the services of contracted specialists. Emergency repairs to the school building, such as damaged roof, could be completed using funds from the district’s surplus.