Dear Parents and Community Members,

All district residents have likely seen a historic increase in their property values and consequently, a dramatic increase in taxes owed. Typically, increases in tax values do not result in increases in property taxes for school districts. When a levy is passed by the voters, it is passed for a certain number of mills, which bring in a fixed amount of funding to a school district. As a result of HB920 passed in the 1970s, as property values increase, the millage required to bring in those dollars decreases so that the levy will bring in the same amount of money originally approved by the levy. 

However, there is an exception to this in State law called the 20 mill floor. Simply put, a school district’s operating levies effective rates may not be reduced below 20 mills. If property values increase so that the millage rates to collect the required amounts falls below 20 mills, the tax rates will not decrease below a total of 20 mills. This includes the district’s current expense levies and general fund inside millage.  With the unprecedented rise in property values, the district is currently on the 20 mill floor which has resulted in greater than expected revenue for our school district.

As a result of the increase in tax revenues and the cuts that the district has put in place for this year and next year, we believe our budget will now be balanced through June 30, 2026. While the increase in the revenue will allow the district to be off the ballot for this calendar year, the additional revenues received do not equal what the recently defeated 1% income tax would have generated.  We are currently projecting deficit spending by the end of the 2027 fiscal year, but as always, we will diligently be looking for ways to increase revenues and cut costs in ways that limit the impact to the services we provide to our students and community. 

With Much Appreciation,

Mike Von Gunten

Keri Angney