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Milton, Edgerton losers in school funding shift

“Some districts came out winners and some districts came out losers, and we came out a loser.”

That was the assessment of Dianne Meyer, business manager for the Milton School District, commenting on the switch in school funding that came out of the state budget passed last week.

Milton apparently wasn’t the only loser. Both Milton and Edgerton school districts passed budgets Monday with higher-than-expected levies, and both blamed most of the increase on the delayed state budget.

Even before the state budget was passed, the Legislature agreed to add $79.3 million to school funding. But the deadline to determine general school aid was Oct. 15, and Doyle didn’t sign the budget until 11 days later.

Instead, lawmakers included the money as a “school levy tax credit.”

The two funds serve different purposes: one going to schools and one to taxpayers. And property values affect the two in opposite ways.

General school aid is based on how much property value a district has per student. The lower the district’s value-per-student, the more aid it receives.

The tax credit, on the other hand, is meant for property tax relief. Therefore, the credit increases with increasing property values.

Edgerton and Milton won’t be getting as much money as they expected, and taxpayers will make up the difference, officials say.

The Edgerton School District expected $188,000 more in state aid than it will receive, Business Manager Mark Worthing said.

District property owners will make up the difference by paying an additional $188,000 in levy, but they also will receive a $157,000 credit on their tax bills, he said.

That leaves $31,000 in additional levy for which property owners won’t be credited, Worthing said.

The numbers are even bigger in the Milton School District. The district will receive $300,000 less than it expected, Meyer said.

Property owners will receive a $236,000 tax credit, leaving $64,000 in additional levy.

MILTON SCHOOL DISTRICT

A look at the 2007-08 budget for the Milton School District:

Highlights:

-- The district will receive $300,000 less in state aid than it expected, causing officials to raise the levy. Taxpayers will receive $236,000 back from the state in the form of a tax credit.

-- The district’s enrollment increased by 100, increasing its revenue limit.

-- Property values increased in the district by 5.1 percent over last year.

Total budget

2007-08: $31.5 million

2006-07: $29.5 million

Increase: 6.6%

Tax levy

2007-08: $11.6 million

2006-07: $10.6 million

Increase: 8.7%

Tax rate

(Per $1,000 of assessed valuation)

2007-08: $ 7.56

2006-07: $7.31

Increase: 3.4%

Note: Percent changes calculated on whole numbers.

EDGERTON SCHOOL DISTRICT

A look at the 2007-08 budget for the Edgerton School District:

Highlights:

-- The district will receive $188,000 less in state aid than it expected, causing officials to raise the levy. Taxpayers will receive $157,000 back from the state in the form of a tax credit.

-- District enrollment increased by 47 students, increasing the revenue limit.

-- The city reassessed home values last year, so how much a homeowner pays could change by more than just the increase in the tax rate.

Total budget

2007-08: $20.0 million

2006-07: $19.2 million

Increase: 3.8%

Tax levy

2007-08: $7.9 million

2006-07: $7.3 million

Increase: 9%

Tax rate

(Per $1,000 of assessed valuation)

2007-08: $8.28

2006-07: $7.93

Increase: 4.4%

Note: Percent changes calculated on whole numbers.