Homer School Board Looking at a $4.5% Increase in the 2013-2014 School Tax Levy
Taxpayers in the Homer school district could see the tax levy increase by as much as 4.5% under the proposed budget that is still under development.
District officials presented the latest budget information Tuesday night. The tentative budget calls for just over $39 million in spending for the upcoming school year, the current budget is $38.4 million, the new budget represents a nearly 2% increase in spending over the current year.
According to District officials the increase reflects higher salaries and increased pension contributions.
Over the last two years the Homer school board has trimmed expenses by $1.4 million dollars, but spending has increased due to mandated costs.
The proposed tax levy would go from $15.2 million this year up to $15.9 million for the upcoming school year a 4.5% increase. The tax levy represents the amount of money to be raised by taxes to support school spending. The increase falls within the state mandated property tax cap
The district is expecting an over 2% increase in State aid for the coming year, even with the additional state aide the district faces $628 thousand dollar shortfall. The shortfall would be larger, but the district plans to use $2.3 million in reserves as well as $500 thousand dollars in fund balance to reduce the gap.
The district has not released any proposed cuts or reductions that could close the gap further.