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ST. CLAIR SHORES — On Nov. 7, voters in the Lakeview Public Schools district will be asked to consider a replacement operating millage proposal in the amount of 21 mills, with 18 mills being the maximum levy, for the next 20 years.
According to the proposal language, the proposal “would, replace, restore and extend the authority of the School District to levy the statutory limit of 18 mills on all property, except principal residences and other property exempted by law which currently expires with the School District’s 2024 tax levy and allow the School District to continue to levy the statutory limit of 18 mills in the event of future Headlee rollbacks of up to 3 mills.”
“The authorization will allow the School District to continue to receive revenues at the full per pupil foundation allowance permitted by the State,” the proposal language reads.
Under the 1978 Headlee Amendment to the Michigan Constitution, if the tax base of a local unit of government is increased, the tax rate on that base must be proportionally reduced so property tax revenues will increase no more than the rate of inflation for that year. The Headlee Amendment limited the amount of taxes a school district and other entities could collect as property values go up.
If a property value goes up too much, it will enact a Headlee rollback that decreases the levy, thus the amount of tax dollars collected through the millage, Lakeview Public Schools Superintendent Karl Paulson said.
“So this vote in November is to renew and replace lost millage from prior Headlee rollback,” Paulson said.
The amendment allows the district to ask for more mills than the allotted 18. Even with the increased amount of mills, the district will still only collect 18.
“We have to ask for more to avoid the 18 becoming 17.8, becoming 17.5, becoming 17.0, because the state pot of money — remember the big pot over here that’s most of our money — assumes we’re collecting 18 maximum, locally,” Paulson said.
Paulson said all school districts in the state have to ask for this ballot item occasionally and that it’s not the first time it has been voted on.
Homestead properties will not be affected by the proposal, which will affect only industrial, commercial and other properties that are not primary residences. It does not increase the amount of homestead school property taxes collected, according to a newsletter sent out by the district.
Paulson said home values have rebounded in the last five years and that property values generally don’t see a huge dip unless it happens in times of economic hardship.
He said the last time this item was on the ballot, Lakeview Public Schools asked for a four-year plan to renew and replace the expiring millages.
“We were at 18.6 or something so we asked for 0.5 additional, beyond 18 last time,” Paulson said. “Well, that was spring of 2020. Four years. So we have to renew it at a minimum before four years.”
If the item is not passed, it will expire, dropping the number of mills collected down to zero. Paulson said the $2.6 million collected locally by the millage would not go away slowly, but would disappear all at once.
“After four years, we go (to) nothing. We go back to zero on non-homestead properties,” Paulson said. “Because (of) the 18-mill vote. We’re already below 18 right now. The collection this coming year is going to be like 17.8.”
Paulson added, “It means something for the future to vote 21 mills for 20 years. It just keeps us being able to collect the full 18 hopefully for that whole 20 years.”
On the ballot
Here is the language for the Lakeview Public Schools replacement operating millage proposal as it will appear on the Nov. 7 election ballot:
This proposal would, replace, restore and extend the authority of the School District to levy the statutory limit of 18 mills on all property, except principal residences and other property exempted by law which currently expires with the School District’s 2024 tax levy and allow the School District to continue to levy the statutory limit of 18 mills in the event of future Headlee rollbacks of up to 3 mills. The authorization will allow the School District to continue to receive revenues at the full per pupil foundation allowance permitted by the State.
Shall the limitation on the total amount of taxes which may be assessed against all property, except principal residences and other property exempted by law, situated within the Lakeview Public Schools, County of Macomb, State of Michigan, be increased, in the amount of 21 mills with 18 mills being the maximum allowable levy ($18.00 on each $1,000 of taxable valuation), for a period of twenty (20) years, 2024 to 2043, inclusive with 17.8965 mills of the above 21 mills being a replacement of authorized millage which will otherwise expire on December 31, 2024 and 0.909 mills being a restoration of previously authorized millage lost as a result of the reduction required by the Michigan Constitution? This operating millage if approved and levied, would provide estimated revenues to the School District of $2,600,000 during the 2024 calendar year, to be used for general operating purposes.
