Hutchinson Public Schools' portion of the 2021 property tax levy is $9.3 million, an uptick of $184,464, or 2%.
The levy was approved by the School Board following a Dec. 14 Truth-in-Taxation hearing. It accounts for numerous factors, such as a decline in debt service because the district received bond sales that were better than expected for projects to renovate Park Elementary and West Elementary. The sales reduced voter approved debt by $130,680.
The district also made additions to the budget, such as $43,116 due to unemployment expenditures caused by COVID that were higher than anticipated, and $250,000 for health and safety projects such as asbestos abatement.
The impact of the levy on property owners will vary based on the type of property and the property value. According to Rebecca Boll, director of business and finance, the owner of a $150,000 home in Hutchinson will see $23 less in school district taxes compared to last year. On average, residential property values increased by 6% in McLeod County.
The school's 2020-21 budget forecasts expenses of $30.8 million, with 78% going to salaries and benefits, 12% to purchased services such as for transportation and special education, 6% to capital expenses, and 3% to supplies and materials. Revenues are expected to be $29.6 million, with 83% from state aid, 13% from local property taxes, and the remainder from other sources, such as federal funds.
The school also received more operating capital than anticipated for long-term facility maintenance, alternative program funding and other needs, leading to an increase of $1.5 million for unassigned fund balances.
However, the school felt the squeeze elsewhere. It had expected to be hit hard by the decline in enrollment in the current school year. In June, a decline of 65 students was forecasted. By October that decline had increased to 107. On Dec. 14, Boll saw the decline had reached 123 compared to the prior year.
"Had it not been for the federal stimulus money that will be factored into the budget revision, we would have had enrollment decline by more than $1.5 million in revenue. This is almost a million dollars more of a decline than we were anticipating back in June," Boll said. "We really need to have our students return to us next year, otherwise we need to reduce our expenditure budget or we need to plan to spend some of our savings account, or perhaps a combination."
If per-pupil money the state distributes to schools had kept up with inflation over the past several years, District 423 would receive about $7,000 per student. Hutchinson currently receives $6,560 per student. The difference comes down to about $1.25 million. Local residents cover the difference with their property taxes.
