TRIPP-DELMONT SCHOOL DISTRICT

Public Information Meetings $400K Opt Out

Welcome Thank you for coming tonight, it shows that

you are interested in our District and our students’ educations

This is an Informational meeting tonight – no Board action will be taken

This is not a time to debate, it’s a time for us to present information and for you to ask questions after we finish presenting

This is not a time to question past decisions as we need to move forward from where we are today

Ground Rules We will stay objective and factual and present

information concerning the New Opt Out

If you have personnel or staff concerns, curriculum or school operation concerns this is NOT the time nor place to discuss that

The Board will be collecting written questions to be compiled into a Q+A handout for other sessions

Repeated questions will be answered once, with an indication of how many people asked that same question

Things to Know:

First, the Board and administration have been working hard to find budget efficiencies:

1 teacher FTE cut

1 paraprofessional FTE cut

Four day school week efficiencies with hourly wages, utilities and transportation

Cuts to general supply budgets

Other thoughts:

Combined classrooms – not at this time, but we haven’t completely ruled it out. (Parents don’t want it)

Teacher ratio: Impossible, random number. 80% of SD school districts do not meet it

We have been accountable to our public: Opt Out

Four Day School Week

Budget Efficiencies

Agenda

We will explain our current Opt Out

We will explain the need for a new Opt Out

We will explain the impact of the new Opt Out

We will present election information and ballot information

We will ask for your written questions. Please use the cards for questions-and again, no open mic

Our Guiding Principles

First obligation is to provide the best education experiences and best quality education possible for our students

We are transparent and responsible for communicating our situation and needs to our communities and stakeholders

We are responsible to use the resources generated in a wise and prudent manner while still fully providing for the needs of our students

In Addition

We believe it would be irresponsible for the Board and District and stakeholders to provide only the minimums in terms of educational opportunities for our students

#1 Driving Force

Any and all decisions will be made with our students’ best academic/educational needs in mind

We will continually ask ourselves, “What is best for our students?”

Definition/History

Opt Out: (legal definition)

If a school district cannot operate on the revenues generated by the General Fund levy and monies from state aid, then the school district may choose to “opt-out” of the GF levy limitations

The GF pays for salaries/benefits, instructional supplies, operational expenses and other supplies

State Opt Out Data

150 K-12 School Districts in SD

64 K-12 School Districts have Opt Outs

42.67% of Districts have Opted out

Avg. Opt Out amount = $402,734

Recent TD History

T-D Opt Outs

2008-2010: $225,000 (3 year)

2011-2012: $225,000 (of $300K-7 yrs)

2013: $265,000 (of $300K)

2014-2017: $300,000

How Did We Get to This Point?

1. Years of Declining Enrollment

2. Changes to School Funding Formula/School Funds

Factor 1: Declining Enrollment

Factor 2: School Funding

FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16

State Aid $4,528.80 $4,642.02 $4,804.60 $4,804.60 $4,389.95 $4,490.92 $4,625.65 $4,781.14 $4,876.76

$4,100.00

$4,200.00

$4,300.00

$4,400.00

$4,500.00

$4,600.00

$4,700.00

$4,800.00

$4,900.00

$5,000.00

PS

A

State Aid

FY10 + FY11

Frozen @

$4,805

FY16

$4,877

FY08

$4,529

FY12 – Big Cut

$4,390 [-$415]

FY 14

$4,626

Factor 2: School Funding

FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16

Total % Increase 3.76% 2.50% 3.00% 0.00% -8.60% 2.30% 3.00% 3.36% 2.10%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

Pe

rce

nti

le

Total % Increase

FY08

3.76%

FY11

0%

FY12

-8.6%

FY14

3%

FY16

2.1%

New Opt Out

$400,000 every year for 5 years –

Why 5 years?

The Legislature is going to study the new funding formula for 3 years, then review it in year 4

Gives us time to see the results of the Legislative study and any potential changes they may make to the law

New Opt Out and “Overlap” Year

Overlap: Tax year Jan 1. – Dec. 31, 2018

District will receive Current Opt Out taxes plus New Opt Out taxes for that year

Paid in two installments each year

Handout #1 Opt Out Taxes based on current

Valuations and Levies

New Opt Out Tax

What is the difference between a $300,000 Opt Out and the new $400,000 Opt out on my taxes?

Generally, it will increase your current Opt Out tax by one-third

Let’s see an example…

Handout #2 Tax Bill - House

The Overlap Year

Rationale for doing an Overlap

Board’s goal was a 5 year Opt Out

$400,000 Opt Out with Overlap achieves that goal

An Overlap saves the taxpayers money over the five years

Without an Overlap, the Opt Out would have been much larger - $800,000 for 5 years

Let’s see examples-

Why Choose an Overlap? $43,000 House @ $400K Opt Out with Overlap

Taxes: $87.03 x 4 years = $348.12 plus overlap year of $152.32 = $500.44 in taxes paid for 5 years

$43,000 House @ $500K Opt Out , no Overlap

Taxes: $108.77 x 5 years = $543.85

This puts us $1M in debt

$43,000 House @ $600K Opt Out, no Overlap

Taxes: $130.58 x 5 years = $652.90

This puts us $500K in debt

Handout #3 – Ag Land Tax Bill

Good Dirt – Ag Land example

120 acres @ $400K Opt Out with Overlap

Taxes = $196.99 x 4 years = $787.96 plus overlap year of $344.78 = $1,132.73 in taxes for 5 years

$120 acres @ $500K Opt Out , no Overlap

Taxes = $246.20 x 5 years = $1,231

Can’t make it to SY22

$120 acres @ $600K Opt Out , no Overlap

Taxes = $295.56 x 5 years = $1,477.80

Can’t make it to SY22

Handout #4 – Commercial Bill

Commercial Example

$66,000 Business @ $400K Opt Out with Overlap

Taxes = $260.73 x 4 years = $1,042.92 plus overlap year of $456.33 = $1,499.25 in taxes for 5 years

$66,000 Business @ $500K Opt Out , no Overlap

Taxes = $325.87 x 5 years = $1,629.35

Can’t make it to SY22

$66,000 Business @ $600K Opt Out , no Overlap

Taxes = $391.20 x 5 years = $1,956.00

Can’t make it to SY22

Remember -

The Board wanted to go 5 years-the Legislature is going to study the new funding formula for 3 years, then review it in year 4

The Board wanted to see if there were going to be changes in those years

Without an Overlap in the Opt Out, the amount would need to be $800,000 to reach that goal and have the budget remain in the black

Let’s Take a Closer Look at an $800K Opt Out on Taxes…

$43,000 House @ $400K Opt Out with Overlap

Taxes: $87.03 x 4 years = $348.12 plus overlap year of $152.32 = $500.44 total in taxes paid over 5 years

Same house, @ $800K Opt Out , No Overlap

Taxes: Current $147.9 x 2.666 (increase) = $174.06/year x 5 = $870.30 in total taxes paid for 5 years, an increase of $369.86

Ag Land example – $800K

120 acres @ $400K Opt Out with Overlap

Taxes = $196.99 x 4 years = $787.96 plus overlap year of $344.78 = $1,132.73 in total taxes paid for 5 years

Same land, @ $800K Opt Out , No Overlap

Taxes: Current $147.78 x 2.666 (increase) = $293.98/year x 5 = $1,969.90 in total taxes paid for 5 years

Commercial example – $800K

$66,000 Business @ $400K Opt Out/ Overlap

Taxes = $260.73 x 4 years = $1,042.92 plus overlap year of $456.33 = $1,499.25 in total taxes paid for 5 years

Same business, @ $800K Opt Out , No Overlap

Taxes: Current $195.60 x 2.666 (increase) = $521.47/year x 5 = $2,607.35 in total taxes paid for 5 years, an increase of $1,108.10

Opt Out Election

The Election for the Opt Out will be Tuesday, May 2

Polling places at Delmont City and Tripp City

Voting times are 7 a.m. to 7 p.m.

Must be a registered voter in the T-D School District

Must live in T-D School District

Opt Out Election

Absentee applications and ballots are available now in the school Business Manager’s office from 7:30 – 3:30

If you vote on Election Day or Absentee, you will need a photo ID

If you are not registered to vote, you cannot vote

Opt Out Election

Be heard!

You want your voice to count!

VOTE!

Questions

You’ve heard our information, please submit your questions in writing

Remember, there is no open mic – this is an informational meeting

Please hand your questions to the runners-please only new questions.

Vote on the Facts

Be careful of the rumors and misinformation

Tax information presented is general – a guide – for more specific information, see your County Assessor

Thank you for coming tonight!

Please vote

May 2!