Enhancement Millage Information 11/6/18

Background Information

Proposal A

Following the legislation of Proposal A in 1994, concerns existed that, over time, the new funding plan could fall short of revenue needs in certain communities. To compensate for the potential need for additional revenues, Proposal A included a provision that ultimately allows Intermediate School Districts, or ISDs, to levy millage funding to be distributed 100 percent on a per-pupil basis to every constituent K-12 school district and public school academy within that ISD.

Finance Studies

More recently, two studies have been conducted on pupil funding. In June 2016, the State of Michigan Legislature sponsored The Michigan Education Finance Study with a recommended base funding of $8,667 per pupil. In January 2018, the School Finance Research Collaborative recommended that every district receive base funding of $9,590 per pupil. Both studies’ recommendations are well above what most districts, including Holland Public Schools currently receive in state funding.

Enhancement Millage Financial Details

Known as a regional enhancement millage, the proposal allows local communities within an ISD area to financially partner in an education tax to be distributed to public and charter schools on an equal per-pupil basis. Under management of the Ottawa Area Intermediate School District, the proposal request is 0.9 mills for 10 years and would generate approximately $11.2 million in the first year, or $226 per pupil. Holland Public Schools would receive approximately $851,637 based on current enrollment projections of $3,775.05 students.

Voters will decide on the proposal on the November 6, 2018 ballot. Those seeking additional information are encouraged to contact Dr. Brian Davis

HOW HOLLAND PUBLIC SCHOOLS WOULD USE FUNDS GENERATED FROM THE ENHANCEMENT MILLAGE IF APPROVED

Our school district will be able to use these resources to meet the unique needs of our students and provide high-quality classroom instruction. Funds from this proposal will be spent on:

  • Early Literacy-Focusing on small class sizes and supports in grades TK-3
  • Social Competency and Mental Health Supports focusing on Positive Behavior Support Models and interventions to ensure that all staff and students are afforded powerful learning opportunities in safe, secure and predictable learning environments.
  • College & Career Readiness that prepares each graduate for success in a diverse and ever changing world.
  • Maintaining our current offering of STEM/Honors/Advanced Placement classes and rich array of extra-curricular programming that supports students beyond the core curriculum.

AMOUNT HOLLAND PUBLIC SCHOOLS WOULD RECEIVE IF APPROVED:

Holland Public Schools would receive approximately $851,637 based on current enrollment projections of $3,775.05 students.

Answers to Frequently Asked Questions

Ottawa Area Regional Enhancement Millage Proposal: Answers to Frequently Asked Questions

Why are Ottawa Area School leaders asking for the funds?

Leaders of the eleven K-12 Ottawa Area school districts felt the need for new revenues was significant enough to go to the voters.  All have seen the purchasing power of state revenue decline.  A report from the House Fiscal Agency in August 2017 found school revenues, adjusted for inflation, are almost eleven percent less today than in 2000.

Because revenues have declined, Ottawa Area districts have cut millions in administrative and operating expenses but are still struggling to provide the core educational services necessary for all students to succeed.   A recent study conducted by the School Finance Research Collaborative recommended that every district receive base funding of $9,590 per pupil, which is well above what most districts currently receive in state funding.  That report also recommended much higher spending to compensate for the additional needs of at-risk students and English Language Learners, as these students require far greater attention and support services than most other students.

In addition, a three-year study by the Michigan State University Policy Institute released in June 2016 found Michigan school districts face financial hardship based on factors almost entirely outside their control.  Chief among those factors were inadequate state funding, declining enrollment and the increasing number of students with special needs.

What is an enhancement millage?

When the legislature drafted a new funding formula for public schools, passed by voters as Proposal A in 1994, concerns existed that, over time, the new funding plan could fall short of revenue needs and expectations in certain communities. To compensate for the potential need for additional revenues, Proposal A included a provision allowing Intermediate School Districts, or ISDs, with voter approval, to levy up to 3 mills for 20 years or less, to be distributed 100 percent on a per-pupil basis to every constituent K-12 school district and public school academy within that ISD.

Has this type of election been successful anywhere else?

Yes, both Muskegon Area Intermediate School District and Kent Intermediate School District have held successful regional enhancement millage elections.  In total, six regional millage elections have successfully passed in Michigan.

How is the enhancement millage proposal placed on the ballot?

A number of school boards within Ottawa Area ISD (representing a simple majority of students), have passed resolutions asking the Ottawa Area ISD board to place the proposal on the ballot. Law prohibits local districts from independently asking its voters for additional operating revenue.

Which election will the ballot question appear on?

The November 6, 2018 general election ballot.

What is the duration of the proposed millage?

The duration is 10 years after which the millage will expire and enhancement funding will end unless local boards of education again petition the Ottawa Area ISD to seek a renewal on behalf of local school districts and public school academies.

How much revenue would be generated by 0.9 mills?

Approximately $11.2 million, or $226 per pupil, will be generated in the first year of the millage, however school districts will not begin receiving proceeds until after the first tax collection in 2019.

How much will this cost the average homeowner?

The proposal calls for a levy of 0.9 mills for 10 years.  The state equalized taxable value for a $100,000 home is one-half the market price, or $50,000.  If approved, the owner of a $100,000 home would pay an additional $3.75 per month, or $45 per year.

What can the proceeds from the millage be used for?
Any operational expense of a school district or public school academy, however, priorities may vary in terms of how the money will be spent.

How is an enhancement millage approved?

An ISD-wide (all taxing jurisdictions in Ottawa and part of Allegan) millage request must be passed by a majority of voters.

How is an enhancement millage different from a bond issue?

An enhancement millage is an additional local contribution to school operations that would support programs and services for students. A bond issue is a mechanism for individual school districts to raise capital funds for technology hardware, facility improvements (such as roofs and parking lots) and equipment replacement (such as boilers and water heaters).

How will the funds be distributed?

By law, funds will be collected by Ottawa Area ISD and distributed on an equal per-pupil basis to each of the local K-12 public school districts and public school academies. Ottawa Area ISD will only receive a small portion (less than 1 percent) for students attending general fund eligible programs. If approved, all millage dollars will be publicly reported on each school district’s website and an independent audit will be conducted to ensure transparency and accountability.

How much funding will my school district receive?

If approved, Holland Public Schools will receive about $851,637 of the estimated $11.2 million generated in the first year by the Quality Schools, Quality Communities proposal.

What impact will this proposal have on students in my district?

Our school district will be able to use these resources to meet the unique needs of our students and provide high-quality classroom instruction. Funds from this proposal will be spent on:

  • Early Literacy-Focusing on small class sizes and supports in grades TK-3
  • Social Competency and Mental Health Supports focusing on Positive Behavior Support Models and interventions to ensure that all staff and students are afforded powerful learning opportunities in safe, secure and predictable learning environments.
  • College & Career Readiness that prepares each graduate for success in a diverse and ever changing world.
  • Maintaining our current offering of STEM/Honors/Advanced Placement classes and rich array of extra-curricular programming that supports students beyond the core curriculum.

Why is this proposal important?

Quality schools are key to attracting families and businesses to West Michigan.

How do I get more information on this proposal?

Additional information is available:

SOURCES:

 

Quality Schools Quality Communities Powerpoint Presentation

Ballot Language

Ottawa Area Intermediate School District Regional Enhancement

Millage Proposal

Pursuant to state law, the revenue raised by the proposed millage will be collected by the intermediate school district and distributed to the constituent districts based on pupil membership count. Shall the limitation on the amount of taxes which may be assessed against all property in Ottawa Area Intermediate School District, Michigan, be increased by 0.9 mill ($0.9 on each $1,000 of taxable valuation) for a period of 10 years, 2019 to 2028, inclusive, to provide operating funds to enhance other state and local funding for local school district operating purposes; the estimate of the revenue the intermediate school district will collect if the millage is approved and levied in 2019 is approximately $11,200,000, which funds will be disbursed as required by statute to:

Allendale Public Schools, Coopersville Area Public Schools, Grand Haven Area Public Schools, Hamilton Community Schools, School District of the City of Holland, Hudsonville Public Schools, Jenison Public Schools, Saugatuck Public Schools, Spring Lake Public Schools, West Ottawa Public Schools, Zeeland Public Schools, Black River Public School, Eagle Crest Charter Academy, ICademy Global, Innocademy, Vanderbilt Charter Academy, Walden Green Montessori, West Michigan Academy of Arts and Academics, and Ottawa Area Intermediate School District?

Community Meetings Scheduled

Scheduled meetings as of September 10, 2018

The following dates and times have been established to learn more about the upcoming election on November 6, 2018. These meetings will take place at 320 W. 24th Street in the District Administrative Offices located on the corner of Van Raalte and 24th Street.

  • Monday, September 24, 7:00 p.m.
  • Thursday, September 27, 7:00 p.m.
  • Monday, October 1, 11:00 a.m.
  • Wednesday, October 3, 2:00 p.m.
  • Thursday, October 11, 4:00 p.m.
  • Tuesday, October 16, 6:00 p.m.
  • Monday, October 22, 8:00 a.m.
  • Thursday, October 25, 6:00 p.m.
  • Thursday, November 1, 7:00 p.m.
  • Monday, November 5, 9:00 a.m.