A crucial funding source that most school districts in the state have counted on for decades appears to be losing its reliability.
Three school districts in Oakland County − Ferndale, Oxford and Waterford − are asking voters to approve non-homestead millages, taxes which apply only to businesses and rental properties, on the November ballot.
Two of them, Oxford and Waterford, are asking again after voters said no in the August primary election.
In Oxford, try, try, try again
Oxford Community Schools officials are hoping the third time’s the charm in asking voters to pass this critical operating millage, which first failed a year ago.
“One of the things we heard from voters is they wouldn’t support anything that raises the taxes on their homes at this point,” said Christine Smith,
executive director of communications for Oxford Community Schools. “With this economy, everyone is worried about taxes going up, and there is a concern any millage passing makes taxes go up on homeowners. But passing this does not raise taxes for primary homeowners.”
Since the mid-1990s, state public school districts have been expected to levy this tax locally, at a maximum of 18 mills, on industrial, commercial, and vacation and rental properties in order to receive their full foundational allowance.
Without non-homestead operating millages, districts face losing millions of dollars for teacher salaries, transportation, curriculum, student support services and other basic costs of operating schools.
In Oxford, the district is seeking to restore its operating millage to the full 18 mills from the 17.26 mills it is currently levied at due to Headlee Amendment rollbacks, a millage reduction required by state law when annual growth on existing property is greater than the rate of inflation.
Passage of the 10-year operating millage at the restored rate would give the district approximately $252,288 in additional revenue this year.
But if it doesn’t pass, the stakes are much higher. The millage is due to expire at year-end, and without it, the district will lose an estimated $7 million per year beginning in 2027. Smith said this could necessitate the closure of Leonard Elementary School, implementation of 1.5-mile walking zones to save on transportation, pay-to-play sports, and staffing cuts as the district would seek to eliminate $4.4 million in salary.
In Waterford, a packed ballot
In the Waterford School District, if the district were able to levy the full 18 mills, it would garner an estimated $17.7 million this year alone for operating purposes.
Currently, the district is only levying 17.6749 mills due to Headlee rollbacks over the past few years, resulting in a loss of half a million dollars.
The November ballot measure asks Waterford voters to approve 22 mills for 10 years, with 18 mills being the maximum levied annually, in order to avoid future Headlee rollbacks.
A request for passage of the Waterford School District non-homestead operating millage on the August ballot failed by a margin of 52% no to 48% yes.
District Director of Communications Sarah Davis said to her knowledge, it was the first time a non-homestead school operating millage had failed in Waterford.
It wasn’t the only measure failing on the August ballot. Voters also shot down the countywide 1.5 mill school enhancement millage proposal and two Waterford public safety millages.
“I think it was too much being asked of voters on the ballot,” Davis said. “(The school enhancement millage) had a tax increase, and (our non-homestead operating millage) did not, but people said, ‘Vote no on all of these, it’s a lot being asked.’”
While the Waterford police and fire millages will be back on the November ballot (as will public safety millages that failed in four other communities) Davis said the district’s data shows there is support for the non-homestead operating millage.
“It’s critically important to receive this funding so we can continue to provide all these educational opportunities our students deserve,” Davis said.
In Ferndale, a look far into the future
In Ferndale, district officials are taking an extraordinarily proactive approach toward the non-homestead operating millage.
Ferndale’s current operating millage has been rolled back to 16.3262 mills and expires in 2035. District officials are asking voters to approve 20 mills for 20 years, with 18 mills the maximum levied amount in any given year.
If approved, the millage would provide estimated revenues to the school district of $6,742,038 in 2027.
Susan Bromley covers Oakland County for the Detroit Free Press. Contact her at 517-281-2412.
This article originally appeared on Detroit Free Press: Oakland districts seek operating millages in hostile tax environment
