Nell Holcomb district may face tough choices

The Nell Holcomb School District hosted its first of two town hall meetings Monday to provide details about an April ballot issue that would allow for local control of the annual tax rate.

The measure -- Proposition 2 -- would eliminate the mandated Proposition C rollback. Proposition C, enacted in 1982, is a one-cent statewide sales tax for education with a corresponding property tax reduction for school districts.

Revenues generated by Proposition C were intended to roll back, or reduce, property taxes by an amount equal to one-half the amount each school district receives via the sales tax revenue at the state level.

Since the proposition has been enacted, more than 400 districts in Missouri waived the rollback, allowing the districts to use money generated by the sales tax in addition to the tax levy funds based on assessed valuation.

Superintendent Darryl Pannier said the amount of rollback on average for the past 10 years has been about 10 percent of the total tax, which equals $120,000 to $150,000, depending on the year.

"We're at a time now where the district could no longer afford to roll that back," Pannier said. "The district is asking to be able to keep that money. The reserves that we've had over the years that have been able to sustain us, we're getting to the point where we're going to have to find revenue streams."

During the past several years, there has been a 15 percent decrease in enrollment at the district in its kindergarten through eighth-grade population. The school had about 325 students in the fall of 2006, compared to 275 students last fall.

District officials estimate the loss of 50 students has cost the district $500,000 in revenue during the past several years because the state provides a set amount per student.

"We have building going on and we have people moving out here, but they're moving out here to retire," Pannier said. "We're not having the younger couples move out here that have kids. We have some, but we don't have it turning over like we'd like to see it. The loss of kids is loss of revenue."

Officials said with the passage of Proposition 2, the district still would have the lowest tax rate of the five school districts in Cape Girardeau County, with a rate of $3.60 per $100 of assessed valuation. The current rate is $3.2581.

The Oak Ridge School District has the second-lowest tax rate at $3.6500. Jackson has the third-lowest, with a rate of $3.8000.

Based on the 2014-2015 local school levy, the waiver could have generated about $150,000 more tax revenue during the school year if there had been a full waiver voted on by the school board and the rate was set at the $3.60 ceiling.

For the owner of a $150,000 home, the 35-cent levy increase per $100 of assessed valuation would equate to an annual increase of $99.75 in residential property taxes, according to the district.

If the waiver does not pass, the district will continue to make cuts in personnel, programs and services to offset the shortfall of revenue and continual rise in expenditures.

If voters approve the waiver, Pannier said the money would be used to supplement other revenue and offset the current shortfall.

A second town hall meeting will take place at 7 p.m. March 23 at the Nell Holcomb library.

klamb@semissourian.com

388-3639

Pertinent address:

6547 State Highway 177, Cape Girardeau, Mo.