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What is an emergency levy?
An emergency levy is a property tax that serves as a limited operating levy (maximum of 10 years) proposed for a specific dollar amount. Highland is seeking a 5 year levy.
How much money will the 5.9 mill levy generate annually?
The 5-year emergency levy will collect $3,813,800 per year. If the levy were to pass in August, collection does not begin until January 2011.
When would the District have to return to the ballot?
In all likelihood, the District would have to return to the ballot in 3 years.
Why do we need a new operating levy?
The schools need a levy to meet rising expenses because school revenues from local property taxes are fixed, and state support and other revenue sources are declining.
Unlike income and sales taxes, which rise with inflation, school revenue is frozen at the last dollar amount approved by voters. A state law called House Bill 920, enacted in 1976 prevents an increase in tax revenues to schools when property values rise.
- All Ohio school districts must return to the voters on a regular basis to request more money to cover costs associated with increased student enrollment and inflationary cost increases. The last new operating levy approved by Highland voters was in 1998 (11 years ago).
- Property taxes currently comprise 60.8% of Highland Schools’ operating revenue. Our reliance on property taxes will increase over the next four years, because other sources of income for Highland, such as state funding and investment earnings, are shrinking.
- Ohio’s phase-out of a business tax known as Tangible Personal Property Tax and the deregulation of the electric and natural gas industries have led to reduced revenue sources, which will continue in the future.
- Additionally, because of our high property values, we receive a low level of state assistance.
- Unfunded state mandates such as the all-day, every-day kindergarten program, which is an added cost of $700,000 per year for Highland.
- Continued reductions in state funding: 1% reduction this year ($42,000) and 2% next year ($88,000).
- Continued decline in investment income.Highland has experienced a reduction of 55% ($434,000).
- State funding cuts are expected to grow.
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What expenses are included in the district’s operating costs?
Operating costs include such items as:
- Instructional programs
- Extra-curricular activities
- Personnel
- Maintenance
- Transportation
- Utilities
Why should I support the levy if I don’t have children in school?
Every Highland resident has a stake in the quality of our public schools.
- An investment in our public schools is an investment in the value of our homes. According to the National Association of Realtors, "Of all the local neighborhood amenities that can influence a buyer’s decision to purchase a home, proximity to good quality schools is one of the most influential."
- Strong schools draw families to Highland Local, creating demand for homes. Quality schools positively affect the quality of life in our community. To maintain this legacy, continued support is absolutely essential.
Has the district been fiscally responsible?
Highland has the lowest per pupil cost in the county.
Highland has always maintained low per pupil costs compared to state and county averages.
- Highland: $8,523
- State $10,184
Is the district controlling costs?
The district has already undertaken significant spending reductions to control costs, including:
- Employee Health Benefits have moved from a self-insured program to COG (2006), saving the district $764,000 in the first two years of the program.
- Participation in the Ohio Schools Council Consortium and the State of Ohio’s Administrative Cooperative Purchasing Program (cooperative purchasing for supplies and food).
- Participation in Energy for Education Program, realizing discounts in electricity between 8.69% and 13.4%.
- Reduced overall district building budgets 20%.
- Reduction in extended-day contracts.
- Reduction in staff through job elimination. Eliminated jobs were not replaced.
- Strict monitoring of overtime and controlling extra-hours.
- Maintain a high administrator/pupil ratio: 212:1 (Highland) 184:1 (comparable districts) 159:1 (State average)
- Participation in Group-Rating Program for Worker’s Compensation Program, saving over $80,000 per year.
- Reduced five Literacy Camp teachers.
- Ability to fund capital project expenses through the Sales Tax Fund versus General Fund.
Effective in January 2010, the Board implemented the following reductions to save $1.2 million annually:
- Reduced 23 support and certified staff: 4 teachers, 12 aides, 5 tutors, 1 custodian and 1 bus mechanic.
- Consolidation and modification of school bus routes.
- Elimination of all transportation for non-essential field trips.
- Elimination of the District’s summer school program.
- Outside organizations pay full rental price to use any school building and any associated personnel costs.
- The Latchkey Program now charged a flat fee for utilities at each building utilized
- Those utilizing PaySchools are responsible for associated administrative costs.
- Administrative pay freeze.
- Initiated a “pay-to-participate” fee structure for all sports and club participation.
Cost per high school student, per sport: $200
Cost per middle school student, per sport: $150
Cost per club or activity, per student: $50
Maximum cap per family, per year: $600
Other notable cost-saving measures:
- In 2006, the District refinanced the bond issue to reduce the interest rate and save taxpayers $1,748,600 over the life of the issue.
- In 2009, the District reduced the bond millage rate from 5.05 mills to 4.40 mills.
- The District continues to participate in many consortiums to save money, i.e. health insurance, electricity, natural gas, computer services, worker’s compensation, etc.
How is the District using the Medina County Sales Tax?
Funds from this tax may only be utilized for permanent improvement projects and capital expenditures
To date, Highland has used the sales tax for much needed improvements such as computer replacements, maintenance and repairs of our schools and athletic facilities, as well as roof repairs and parking lot resurfacing. Highland received $1,002,664.47 in sales tax money.
What will happen if the levy doesn’t pass?
Schools are prohibited by law to operate at a deficit. Cost reductions will be required in 2010/2011 to achieve a balanced budget. Because over 96% of the district’s operating budget is dedicated directly to instructional and support services, the district would need to consider:
- Additional reductions in curriculum offerings, programs and services across all levels
- Additional reduction of teachers and support staff, leading to larger class sizes
- Elimination of general fund technology expenses
- Elimination of general fund instructional material purchases
- Substantially reducing funds allocated to general maintenance and repair of facilities
What are some of the extra services provided to the communities by the district?
- AlertNow (Emergency broadcast system for all families).
- The district waives building fees for community-sponsored organizations (effective January 4th fees will no longer be waived).
- Senior citizens are provided free attendance to all school district events.
- The district also consistently allocates resources for those services that directly impact our students.
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