Batavia School Board Increases Tax Rate, Goes Back On Its Word

Citing harsh economic times, the Batavia School Board on Tuesday went back on its word about keeping the tax rate steady for residents.

“It’s difficult for me to recommend this step, but I felt like we couldn’t continue to push our debt forward,” said Matt Winkle, one of four School Board members who approved a tax rate increase. “We had to start facing our issues today.”

The Board promised to keep the district’s overall tax rate at $4.69 as part of the 2007 Building Referendum. Board members on Tuesday passed a resolution to increase the rate to an amount not exceeding $5 per $100 of equalized assessed valuation for the 2010 levy.This means the school tax rate for the owner of a $100,000 home will not exceed $5,000. 

The School Board increased the rate to help curb a growing deficit in the school district's budget. But the Board will have to make more tough decisions to get Batavia schools completely out of the red.

Next month the Board will likely discuss staffing and program changes in their budget plans. No other cuts have been finalized, said Kris Monn, the district's finance director. 

Divided on Dollars

School Board President Ron Link voted against the proposal, saying board members made a commitment not to increase the tax rate.

“There are other options I’m personally more comfortable with,” he said. “I’m not going to be able to support this motion.”

Other board members said approving the resolution is necessary.

“I think this is a good plan,” Board Member Kristin Behmer said. “I think the community would understand. Because of the budget crunch we’re in, we now have to have other options than completely keeping the tax rate the way it is.”

School officials set the rate to go up to $5 as a precaution. They actually expect the rate to be $4.84 once final home values are known, but they need the flexibility to adjust their figures since final valuation won't come out until after the March 15 tax abatement deadline. 

Fragile Funding

School officials said fulfilling the promise of holding the tax rate has become more difficult as property values decline.

In 2010, the valuation declined by 2.75 percent and might fall by 5 percent in 2011, according to financial estimates.

This decline is happening while the cost to run the district continues to rise. The 2011-12 school year budget deficit is currently projected to be just under $5 million, and will likely reach $7.6 million in 2012-13, if the current tax rate holds.

For the current school year, the district projects that it will spend just over $67 million, with revenues at just over $63 million.

The majority of any school district's budget goes toward salary and benefits for teachers, district leaders and other staff. Employee pay and benefits make up 72 percent, or $48.6 million, of Batavia's budget this year.

The 2011-12 school year will likely see nearly $69 million in expenses, with close to $64 million in revenue, and the 2012-13 projections are close to $70 million in expenditures, with just over $62 million in revenue.