Caledonia Argus

Board explains effects of replacing health and safety levy with operating levy

Posted: 12/10/02

by Andrew Miller
Argus News Reporter

To answer questions and clarify ambiguities about the December 17 operating levy referendum, the ISD #299 school board held a public information meeting at Caledonia middle/high school on Tuesday, December 3.

District Superintendent Jim Tool opened the meeting by spelling out how the operating levy will affect agricultural landownersñ taxes from the operating levy are applicable to the house, garage, and one acre and, moreover, even if an ag-land owner owns several farms, or several plots of land that arenít contiguous, the operating levy wonít be assessed against an additional one acre for each additional farm, unless there is a house on the additional property. Also, he mentioned, barns and sheds are not considered garages, so they will not be subject to taxation from the operating levy.

A point of concern among those in attendance was the importance of the health and safety levy to the well-being of the district. The school board has agreed to refrain from imposing the health and safety levy if the operating levy passes. As such, one meeting attendee commented that, between the operating levy and the health and safety levy, ìthe operating levy is the lesser of two evils, certainly the one that has the fairest taxation,î but she wondered how the board could refrain from imposing the health and safety levy if the operating levy passed. She noted that, in order to have the option of imposing the health and safety levy, the board must get state approval, and to get approval the district must have a demonstrable need for the funds.

Since ISD #299 did, in fact, get approval from the state to impose the health and safety levy, the district must have a need for it. Yet the board has agreed to not levy this money if the operating levy passes. She questioned, if this money is needed for health and safety items, how can the board ìjust set that aside?î

District Superintendent Jim Tool responded by saying, ìThe plan has been that the first $300,000 from the operating levy will go toward health and safety items, and other money for health and safety items will come from the capital reserve fund.î It was necessary to get state approval to impose the health and safety levy, he added, in the event that the operating levy doesnít pass, so that health and safety items at the former high school can be taken care of.

Another attendee inquired as to the advantages of the operating levy, which spans five years, versus the advantages of the health and safety levy, which spans one year. Board members noted that, for one, local taxpayers pay a larger share of the dollar amount with the health and safety levy compared to what theyíd pay with the operating levyñ 90% with the health and safety levy, compared to 53% with the operating levyñ and that with the operating levy, the tax on agricultural land ìgoes away,î in that with ag-land, only the house, garage, and one acre is subject to the levy, whereas with the health and safety levy, all agricultural land is taxable.

Also, if the operating levy fails and the board does impose the health and safety levy, it is probable that the board will try to pass an operating levy referendum the following year because, as board member Cheryl Whitesitt commented, ìanything for one year is only a patchî and the health and safety levy would not completely rectify the districtís financial situation.

In addition, there is no guarantee that the state will offer 47% equalization with an operating levy in the future. The general sentiment expressed by the board was that, in the coming years, state equalization for an operating levy could very likely be substantially less.

Another question from the public focused on the reinstatement of programs expunged due to recent budget cuts, such as cuts in the CHS music department, if the operating levy gets passed by voters. One woman asked, ìDo you feel that the programs will be reinstated, or will the money be used for other purposes?î

Tool answered in the affirmative, noting that the district is in the position of reinstating things like pep band if the operating levy receives voter approval.

Other questions focused on whether the districtís budget for next year was devised under the assumption that the operating levy referendum would pass. Tool stated that the district has planned a budget for both scenariosñ if the referendum gets passed by voters, many programs that have been cut in the past will be reinstated and funds can be devoted to items like curriculum support and technology updates; if the referendum fails, $300,000 in cuts will be made, which will include the elimination of funding for athletic and co-curricular activities, as well as the elimination of certain staff positions.

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