Holding the line on taxes

Shrinking funding sources are putting a lot of pressure on school boards across the U.S., and Columbia Falls schools are no exception. But the School District 6 board found a way to meet educational requirements without raising taxes.

The school board approved the final budgets for the high school and elementary school districts during their Aug. 8 meeting after they received property tax figures from the Montana Department of Revenue. Local property owners will be levied 212.15 mills, which is a 1.22 percent decrease, school superintendent Mike Nicosia reported.

The adopted budget for the elementary district from all revenue sources is $9.7 million, which is $238,188 less than last year. The high school budget is $5.1 million, a decrease of $304,865 from last year.

Several factors impacted the final budgets, Nicosia said. While the 2011 state legislature increased school funding by 1 percent for the current fiscal year, the general fund actually decreased by 1 percent because of the loss of federal stimulus money provided last year through the 2009 American Recovery and Reinvestment Act.

In addition, state funding based on the "average number belonging" declined because of shrinking enrollment, Nicosia said. Enrollment in the elementary district is 1,580, down by 34 students. Enrollment in the high school district is 800, a loss of 48 students.

To make ends meet without having to go to homeowners with a levy request, the school board opted to make more cuts. About 10 full- or part-time teachers and support staff were cut last year, and 20 more were cut this year. Hardest hit were paraeducators, which declined from 77 last year to 68. Four high school teachers and four elementary school teachers were also cut this year.

Helping out on the revenue side is the fact that the taxable value of both districts has continued its steady climb from five years ago. The taxable value of the high school district increased from $31.34 million last year to $32.87 million this year. The elementary district increased from $27.82 million to $28.71 million.

While many local taxpayers saw their property values increase during the state's recent six-year reappraisal, many could benefit from an increase in the residential exemption from 41.8 percent to 44 percent and a decrease in the assessment rate from 2.72 percent to 2.63 percent. These changes were passed by the legislature as a way to soften the impact of the reappraisal.

For example, the owner of a home with a market value of $216,000 during the 2011 fiscal year that was levied 214.77 mills by the school district paid $734 in taxes. The same home, now worth $232,000 in the 2012 fiscal year and levied 212.15 mills, will be taxed $725 - nine dollars less.

The budgets also include a $62,000 set-aside, which is expected to cover taxes protested by the Columbia Falls Aluminum Co. in the 2011 tax year, business manager and clerk Dustin Zuffelato said.