The preliminary budget for the next school year in Burrell School District proposes a 4% rise in real estate taxes for property owners.
The budget draft adds up to about $36.7 million, marking a 1.35% growth from this year's budget, as stated by Jennifer Callahan, the district's business manager.
A shortfall of approximately $370,000 exists, according to her.
Callahan mentioned, "We will keep looking for ways to reduce the shortfall, such as making budget cuts, reallocating funds, or finding more sources of income in the coming months to aim for a balanced budget by June."
Callahan explained that the proposal includes a 4.5-mill increase in real estate taxes, from 111 to 115.5 mills, which translates to about a 4% hike.
If the entire tax increase is implemented, the owner of a home with a median assessed value of $23,000 would pay almost $2,700, an increase of $103.50 for the whole year.
The homestead exclusion amount for the ongoing school year is roughly $2,340. Callahan noted that data for 2024-25 is not yet available for the district but is typically stable. The exclusion represents the amount subtracted from a home's assessed value before taxes are computed and is applicable to long-time homeowners.
According to Callahan, there is no growth in the overall real estate assessment value of the district compared to the ongoing school year.
She mentioned that appeals for reduced taxes from various large commercial properties led to decreased assessed values for them. This resulted in a reduction of tax income by over $600,000, equivalent to about 4 mills of taxes.
Callahan asserted that significant budget increases consist of special education services and student placement tuition, amounting to a 14% or $312,000 escalation from this year.
She indicated an increase in students with special needs as well as an increased cost of services for the district during this school year.
Furthermore, there has been a substantial rise in the number of students placed outside the district for special education, from nine students in the 2022-23 school year to 18 students for the next school year, according to Callahan.
Callahan stated, "The increased needs of students educated in our schools have resulted in the necessity for more classroom aides and support staff."
Other increases include more than 11%, or over $325,000, for employee health insurance, with payroll and wage increases rising by 0.8%, or close to $130,000.
Callahan also highlighted that the district will experience a reduction of nearly $885,000 in federal funding due to the end of federal Elementary and Secondary School Emergency Relief (ESSER) funding. This was part of a covid relief package intended to support schools during the pandemic and will expire on Sept. 30, making the ongoing school year the last with access to this funding.
Similar to other districts, Burrell utilized ESSER funds over the past three years to help manage the growing academic, social, and emotional needs of students.
The school board will consider approving the final budget at its meeting on June 18.
