Schools propose millage reduction to offset tax digest increase

Decatur’s school board surprised observers last week by proposing a reduction in the school millage to at least 19 mills—down from last year’s 20.5 mills—and perhaps eventually to 18.66 mills. Part of this is likely political, considering that in November the board will ask voters to approve a $75 million General Obligation Bond for school improvements. But Board Chairman Garrett Goebel said that wasn’t the primary reason.

“The real thing we’re responding too is the [20 percent] increase in the [city’s] tax digest. Our assumption is that [18.66] is as low as we can go while keeping the ending fund balance the same despite the [tax digest] growth.”

According to the 2015-16 budget the board approved last week, that ending fund balance is projected at $7.9 million. The board will vote on the millage during its July 14 meeting.