School Board proposes tax rate increase to meet 2010-11 budget

The Decorah Community School Board has proposed a tax rate increase of 25 cents per $1,000 of taxable valuation to meet the 2010-11 school budget that is in excess of $24 million. Superintendent Mike Haluska said the primary need for the increase is to fund cash reserves. Last year cash reserves had to be spent in adjustment to across the board legislative cuts. While Governor Culver has proposed a fully funded 2 percent allowable growth for schools, most school districts are skeptical about the Legislature being willing to come up with that amount. Cash reserves will be necessary in the event state funding is not appropriated.

The Iowa Association of School Boards contends that a 6 percent allowable growth is necessary to maintain programs in public schools. So whatever transpires with state funding, districts across the state will be struggling to maintain programs at adequate levels.

The school district needs to pass their budget by April, but the Legislature still has not addressed school funding. They have never delayed the process this long and school districts are frustrated about being forced to make decisions in a vacuum. Haluska said that the Legislature is essentially saying they will balance the budget, but the reality is that they are passing their responsibilities back to cities, counties, and school districts. While the increase proposed may seem significant to local taxpayers, experts are projecting the average increases sought by school districts across the state will be double what the Decorah District may experience.

A public hearing regarding the budget and tax rate increase has been set for 6:00 p.m., April 12 at the Central Administration Building.