Whitnall told to take a smaller tax hike
Residents favor 5.5 percent increase, not 11.7
Greenfield — Whitnall School District administrators had a double-digit percentage increase in its property tax levy in mind.
Taxpayers had other ideas.
With a proposed 11.7 percent increase in the property tax levy in front of them, about 35 residents at the district's annual meeting Monday told administrators the number was unacceptable in view of the current economic picture.
Instead, as a compromise after rejecting two previous proposals, residents favored a 5.5 percent levy increase. However, it remains to be seen what the final number will be when the School Board gives final approval in October to the budget and tax levy. Residents' vote at the annual meeting is essentially advisory.
Impact of lost state aid
While residents pointedly suggested that a double-digit increase was too high given the hardships many of them are facing, administrators noted the sharp cut in state aid was the main reason behind it.
The state Department of Public Instruction estimates that Whitnall will receive $1.4 million less in state aid this year, a decrease of more than 15 percent. In dollar terms, the proposed levy increase was about $1.8 million.
The delicate balancing act of keeping taxes down while still giving students a good education is difficult for districts, which are put in a tough spot because of the state's school funding formula, School Board President Bill Osterndorf said.
"No one is happy about what the tax levy is here," he said.
Keeping in mind residents' preferences, administrators will now search for ways to trim more out of the budget before it is finalized.
Slicing salary increases
With salaries and benefits accounting for 80 percent of the budget, any meaningful reductions must come from there to keep programs and staff intact, board members said.
Of the three bargaining units, the only union contract not yet settled is for teachers. Board member Rick Kollauf suggested the cuts come out of that contract.
Earlier in the night, the board unanimously approved the budget contingent on a levy increase no higher than 7.5 percent. Kollauf said that could be accomplished if teachers accept a 2 percent increase, rather than 4 percent.
Finding the right number
But even that projection didn't please residents.
When they were asked to give their opinion on the board's proposal of a 7.5 percent increase, it was voted down.
Resident George Robak then proposed a 2 percent increase, but that also was denied after audience members said it would cause too drastic of budget cuts.
As a sort of compromise, board member T.J. Anderson then proposed the 5.5 percent increase, which was approved on a voice vote.
Business Manager Amy Kohl cautioned that administrators earlier this year were charged with coming up with $1 million in reductions but that the community rejected it.
Those measures, which included reducing staff, may have to be revisited to meet residents' and board members' requests, she said.
The administration's $28.7 million budget presented to the board and residents was 2.92 percent less than last year. Under that proposal, the tax rate would be $9.72 per $1,000 of assessed property value, up from $8.87 last year.
That means a person owning a $200,000 home would pay $1,944 in school property taxes.
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