Frequently Asked Questions
What is the August 2, 2022 Operating Millage Renewal Proposal?
Currently, the district has 20.7087 operating mills that will expire December 31, 2022. If the August 2, 2022 millage renewal proposal of 20.7087 does not pass the district could lose approximately $255,860 for 2023 per Headlee rollback. Then, if the operating millage does not pass by December 1, 2023, the district would lose approximately$255,860 beginning in 2023.
What is the Headlee rollback and Headlee override?
Headlee rollback requires a local unit of government (school districts) to reduce its millage when annual growth on existing property is greater than the rate of inflation. This causes a local unit millage rate to be “rolled back” so that the resulting growth in property tax revenue is no more than the rate of inflation. A “Headlee override” is a vote by the electors to return the millage to the originally authorized amount and is necessary to counteract the effect of the “rollback”.
How would this affect my property taxes?
There is no property tax increase for homeowner’s primary dwellings due to this millage proposal. The operating millage renewal is not levied on homestead property. Only non-homestead properties (businesses, 2nd homes, etc.) are impacted. Homeowners will see no increase in local school taxes for their primary dwellings if the proposal is approved.
What difference will this operating millage make for New Lothrop Area Public Schools? If voters approve the operating millage renewal at 20.7087 mills, New Lothrop Area Public Schools will continue to receive full funding for daily operation at approximately $255,860 per year for the next 10 years. Didn’t the New Lothrop Area Public School District just ask for a bond vote in 2019?
Why is this on the ballot?
In May 2019, the district did pass a bond issue. However, this is not a bond issue. The only way our district will continue to receive full operating funding is if the voters approve the operating millage renewal on non-homestead and non qualified agricultural properties. Without this funding, the millage rate on 2nd homes and business properties falls to zero and the district will lose approximately $255,860 a year for the next 10 years.
How will New Lothrop Area Public Schools use the operating millage renewal funding?
The annual operating budget of the district is approximately $10.3 million, of which, some key expenditures are: classroom curriculum and materials, school supplies, school safety, facility maintenance, utility costs (electricity, gas, water, and sewer), fuel costs, and student transportation/bussing. The operating millage renewal represents about $255,860 annually and is vital to the day-to-day operation of the district to serve students and the community. The annual loss of $255,860 would be detrimental to the quality of education and services that New Lothrop Area Public Schools can provide its students, families, community and other stakeholders.
What will the ballot language say on August 2, 2022?
This proposal will allow the school district to levy the statutory rate of 18 mills on all property, except principal residence and other property exempted by law, required for the school district to receive its revenue per pupil foundation allowance and renews millage that will expire with the 2022 tax levy.
Shall the currently authorized millage rate limitation of 20.7087 mills ($20.7087 on each $1,000 of taxable valuation) on the amount of taxes which may be assessed against all property, except principal residence and other property exempted by law, in New Lothrop Area Public Schools, Shiawassee, Saginaw and Genesee Counties, Michigan, be renewed for a period of 10 years, 2023-2032, inclusive, to provide funds for the operating purposes; the estimate of the revenue the school district will collect if the millage is approved and levied in 2023 is approximately $255,860?