District lowers proposed school levy

Shawano School District officials might be backing away from a proposal to levy as much as they can under state law for the 2014-15 budget.

An earlier version of the proposed budget called for a $13.5 million tax levy, the maximum the district would be allowed to tax and about $600,000 more than this year’s levy of $12.9 million.

The district’s Finance Committee on July 23, however, discussed a tax levy of just over $12.9 million.

At a meeting Thursday at Shawano Community High School, district business manager Louise Fischer told an audience of almost 25 people that the tax rate would increase from $10.31 per $1,000 of equalized value in 2013-14 to $10.34 in 2014-15, according to the district’s most recent scenario, and an owner of a $100,000 house would pay $1,034 in taxes this year, as opposed to $1,031 in 2013.

The district’s estimate is based on no increase in district property values, which won’t be known until October.

If property values increase more than expected, it would mean a lower tax rate. If values decrease again, as they did last year, the tax rate could go higher.

Fischer said she received preliminary estimates from the Wisconsin Department of Revenue indicating a potential 2 percent decrease in property values. A 2 percent decrease would increase the tax rate to $10.55 per $1,000, she said.

In two previous community budget meetings, officials estimated the tax rate would increase to $10.81 per $1,000 if the district opted to levy the maximum and equalized property valuations stayed stagnant.

Fischer reiterated her stance Thursday that the district should levy the maximum, saying it could hurt the schools in the long run in terms of the state aid received. The district is estimated to receive $13.4 million from the state for 2014-15.

“In many instances, a school that is frugal and is not spending their entire budget or underlevying is penalized,” Fischer said. “Do you want the money to go here or to other school districts?”

Shawano resident Jane Hahn told district officials said she didn’t feel the district should raise taxes when the cost of living is going up. She recommended laying down gravel in parking lots instead of new asphalt.

“What we need to do here in Shawano is talk about needs, not wants, not what we can do in a long-range plan,” Hahn said. “All of us are cutting corners on everything. We don’t need our taxes raised.”

The School Board will meet on Monday to continue its budget discussions, including whether to exclude a budget presentation and levy vote from the district’s Aug. 18 annual meeting. The public, instead, could vote on the levy in September, Fischer said.

Fischer said the delay would be beneficial because the district hopes to have more solid budget numbers for the levy vote. Plus, she is scheduled to be on vacation the week of the annual meeting.

Final approval of the budget and levy will likely occur in October, when the board has final enrollment numbers and statewide equalization valuation results.