PROPERTY VALUES, STATE AID DOWN FOR AREA SCHOOLS
Monday, October 18th, 2010 -- 10:48 AM
Area schools got some bad news last week. The state released districts? property values, and, for the first time for as long as anyone can remember, they went down. The result will be higher than expected tax rates. The good news is, in theory, the actual dollar-amount of the bill shouldn?t change all that much.
"Our district property values have dropped about $10-million," says Neillsville superintendent John Gaier, "and that's the first time property values have dropped during my tenure."
He anticipated a sub-par 1% increase in property values, but didn?t foresee the district actually losing over 2%, likely do to the slumping real estate market.
While the decreased property value will likely lead to a higher tax rate, individuals might end up paying about the same amount.
"If their property values went down, even if the mill rate goes up, the difference they pay might not be that great," Gaier says.
[b]GUESSING GAME[/b]
By statute, schools have to hold an annual meeting to present their proposed budget. While most area districts have a pretty good feel for what it will cost to operate their schools by the annual meeting date, they are forced to "guesstimate" their property values, state aid and headcount.
Since their annual meeting, Neillsville also learned they?re going to lose $80,000 in state aid.
"And that was not predicted. Early estimates had us dropping about $5,000. That will impact property taxes," Gaier notes.
The school board will hold a levy-setting meeting ?in the next week or two.? They?re going to have to decide whether to raise the levy from earlier projections. While their tax rate was projected at $8.70 at the time of the annual meeting, the board could opt to go as high as $9.62 per-thousand under the state-imposed revenue cap.
Neillsville?s not the only school that was hit with some bad news last week.
Loyal?s equalized value decreased by about 2.8%, Granton?s dropped 3.5% and Greenwood?s dropped 4.3%.
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