Lake Orion Schools is preparing to once again tighten its budgeting belt, putting a Headlee override to a vote in the May 2 election.
If the Headlee override passes, it will allow the schools to again levy 18 mills.
LO Schools Executive Director of Business Services Jillynn Keppler told the school board on Jan. 11 that plans were already being made for next year’s budget, and that the schools were facing several uncertainties.
‘Enrollment is flat, with a zero student increase,? she said. ‘That’s very unusual, and has a big impact on our budget.?
The district needs $3.3 million to balance the budget, with a possible $200,000 increase coming from the state.
‘But the state’s budget is not in a good place either,? said Keppler.
Part of the fund balance could be used to balance the budget, but Keppler said that wasn’t a good option.
‘We don’t want to use money on interest,? she said. ‘So we’re going to go forward with the budget in reduction mode.?
The Headlee override would allow LO Schools to levy up to 18 mills, as they have for the past 11 years.
‘All the numbers depend on the Headlee passing,? Keppler said.
Letters containing this information are being sent home to parents in the elementary schools, and put on Edline for the middle schools and high school.
The information will also be posted on the Lake Orion Community Schools website, and on Orion cable.
‘We’ll be going for the Headlee override in the May election,? said Keppler.
Headlee legislation, sometimes called the Headlee rollback, was ratified in 1978, and requires that when growth on a community’s existing property is more than inflation, the local government must ‘roll back? to its maximum authorized millage rate.
This is done so the increase in property taxes caused by growth on existing property does not exceed inflation.
Should voters agree in May, the school district may increase revenue by levying up to the allowed millage rate.
‘As a homeowner, it does not affect you at all,? Keppler said. ‘It’s for businesses and commercial properties only.
Superintendent Christine Lehman said it was important that people know that to pass the Headlee override is not an increase in the amount of mills the schools already levy.
Keppler told The Review that since the community already passed the non-homestead renewal last year, which brought the schools up to 18 mills, they are not being asked to do anything different this year.
‘But every year the Millage Reduction Fraction limits the cost of living index,? she said. ‘The Headlee override says if we are reduced, this will make up the difference.?
Keppler said if the Headlee override isn’t approved by voters, the schools will have lost revenue.
‘The state doesn’t make up that component,? she said. ‘We could see a loss of $600,000 per year.?
Also, the only way for the district to get extra funds from the state is by adding more students.
Lehman told The Review that two companies looked at the enrollment issue, which is something the district has been anticipating for the past couple of years.
‘This year we had (a 27-student increase),? she said. ‘Last year, it was 210.?
Lehman said in the district’s ‘heyday? it was an increase of 450 students a year.
Lehman said Lake Orion Schools was also aware of future developments coming to the area that could push future enrollment up again, specifically a very large development proposed by the Moceri Company for Oakland Township.
?(Enrollment) has just slowed down with the economy,? she said. ‘This just happened a couple of years earlier than we had hoped.?