INFORMATIONAL MEETING SCRIPT SPEAKER: Becky Slides 1-5 (Slide 2) - - PDF document

INFORMATIONAL MEETING SCRIPT SPEAKER: Becky Slides 1-5 (Slide 2) Good evening, and welcome to our informational meeting about the proposed Opt Out. Just being here shows that you are interested in our students’ educations. This is an informational meeting only, no Board action will be taken tonight. Tonight is not the time to argue, or to convince people in the audience or the Board to believe one way or another. We will present information about the Opt Out, and you will be able to write out your questions for us to answer. And, this is not a time to question past decisions as we need to move forward from here. (Slide 3) Here are our Ground rules for tonight:

• We will stay objective and factual as we present this

information

• If you have personnel or staff concerns, this is NOT the time nor

place for those questions. You can meet privately with administration with those questions.

• We would like the questions written because we are compiling

a Q + A handout from these informational meetings.

• If five people write the same question, we will indicate how

many asked the question, and answer it once, in order to cover as many questions as we can. At this point, after two previous meetings, we will not continue to answer questions that have been asked multiple times and are covered in the 60 questions

• n the Q + A.

(Slide 4) Here are some things the Board wants you to know:

• We have been listening to you and working hard to find budget
• efficiencies. Here are some examples:
• One teacher and one para position have been cut. Current

staff will cover the classes and services

• We are expecting to see savings with the 4 day school week

that includes savings in transportation costs, hourly wages and utilities

• We will be trimming our supply budgets

We estimate those cuts to save us around $129,000 next year and we will continue to look for more savings. (Slide 5) Other thoughts we want to share with you:

• We have considered Combination Classrooms, but we are not

choosing that option currently. We have heard from many parents and they do not support this. We did not conduct a

formal parent survey now, but that does not mean we may not consider doing one in the future.

• Teacher ratio number: There was no educational research

behind that number—it was just simple math: divide the total number of students in the state by the number of teachers in the

• state. Approximately 80% of the districts in the state can’t staff

within their ratio.

• We have worked to be accountable to you. You asked us to do

a new Opt Out, change to a 4 day school week and look for budget efficiencies. We have done those things. SPEAKER: Ronda Slides 6-9 (Slide 6) Here is our agenda:

• We will explain our current Opt Out
• We will explain the need for a new Opt Out
• We will explain our decision for a new Opt Out
• We will present election and ballot information
• Then we will ask for your written questions-again please put

your questions in writing. There will be no open mic time. (Slide 7) Here are the Principles that have guided us:

• We want to provide the best education experiences and the

best quality education possible for our students

• We are transparent and communicate our situation and needs

to our communities

• We use our resources in a wise and prudent way while still

providing for the needs of our students (Slide 8) In Addition….

• We believe it would be irresponsible for all of us to only provide

the minimums in terms of educational opportunities for our students (Slide 9) Our #1 Driving Force-our students

• We make any and all decisions with our students’ best

academic and educational needs in mind

• We will continually ask ourselves, “What is best for our

students?” SPEAKER: Carrie Slides 10-16 (Slide 10) Let’s look at the legal definition of an Opt Out

• Basically, if a school can’t operate on the money generated by

the General Fund and state aid, they may opt out of the general fund tax limitations

• The General Fund pays for salaries and benefits, instructional

supplies, operational expenses and other supplies (Slide 11) Let’s look at some Opt Out data from across the state

• There are 150 school district in the state
• 64 of them have opted out
• That equates to 42.67%--almost 43% of all K-12 schools in SD
• The average dollar amount that those 64 schools have opted
• ut for is $402,734 – a little more than what we are asking.

(Slide 12) Let’s look at recent Tripp-Delmont Opt Out history

• In school years 2008-2010 we had a 3 yr Opt Out for $225,000
• In 2011, we passed the current Opt Out of $300,000 for 7 years.

For two years, 2011 + 2012, we asked for $225,000 of the $300K

• In 2013, we asked for $265,000 of the $300K and since 2014, we

have asked for the $300,000. (Slide 13) So how did our district get in this place?

• 1. Years of declining enrollment
• 2. Changes to school funding laws

(Slide 14) We’ve seen this slide before—our declining enrollment (Slide 15) This represents our per pupil allocation from the state, and the unpredictability of our state funding. In 2008, we received $4,529 per student. In Fiscal Year 10 we increased to $4,805, but received no increase in funding in 2011. In Fiscal Year 12, the state took away $415 per student. In FY14 we

received $4,626. It’s taken until Fiscal Year 16 to make up any ground, to $4,877—and then they changed the formula last year. (Slide 16) This represents the percentage increases we received in school funding. The red line is 0%. Starting in FY08, we received a 3.76% increase, decreased to 2.5% in FY09, went up to 3% in FY10. We received no increase- 0% in FY11. FY12 was the year of the extraordinary cut of (negative) -8.6%. We still haven’t gained the increases from 08, since FY16 we were at 2.10%, and next year we are slated to receive .3%. SPEAKER: Dr. Jeff Slides 17-31 (Slide 17) Our New Opt Out

• The Board decided on a new $400,000 Opt Out over a 5 year
• period. Why five years? The Legislature is going to study the

new formula for three years, and then review it in year 4. A new five year Opt Out gives us a chance to see the results of the Legislative study, and any potential changes they may make to the law. Based on the information we have now, that is why we selected five years. (Slide 18) This new Opt Out does include an Overlap year

• The overlap is for tax year 2018

• The district will receive the Current Opt Out taxes plus the New

Opt Out taxes for that year

• Taxes are paid in two installments over the year. We will talk

more in depth about the overlap in a little bit. (Slide 19) Take out Handout #1. This table explains the current and new opt out taxes based on 2016 valuations and levies payable in tax year 2017. The first section just shows you the current opt out and new opt

• ut levies and the differences between them.

Take a look at the second section: With a $100,000 house the current opt out taxes are $142.46. The new opt out would raise those taxes to $189.91 or an increase of $47.44 a year. On a house valued at $43,000, the difference between current and new opt out taxes would be $21.74 a year. Another way to look at would be you are paying 24 cents a day for the new opt

• ut taxes on this house.

That table also explains the impact on ag levies and commercial property. The overlap year is also explained on that table, which we will go into detail in a few slides. (Slide 20) Let’s now look at more details of the new vs. old opt

• ut.

• What is the difference between the current and new Opt Out?

Generally speaking, it will increase your current taxes by 1/3.

• Let’s look at an example:

(Slide 21) Take a look at Handout #2- a tax bill from a house taxed at $43,000. It doesn’t matter if the house is in Tripp or Delmont—Opt Out taxes are the same. In the lower middle right you will see a dollar amount of $65.29—the amount of the current opt out taxes. Taking your tax bill, you can figure your new taxes by taking that amount by 1.333. 65.29 x 1.333 = 87.03 – the proposed opt out. Or, as the handout shows, take the current amount by .333 and add that number to the current tax for your new tax amount. (Slide 22) Now let’s talk about the Overlap year.

• The Board made a decision to have a five year Opt Out, in hopes

that Legislative changes would be made to the funding formula

• A $400,000 Opt Out achieves that goal and keeps our budget in

the black

• An Overlap year actually saves taxpayers money over the five

year period. (We’ll see how that works in a minute)

• Without an Overlap, the Opt Out would have to be much larger-
• $800,000 to reach our five year goal
• Let’s see an example:

(Slide 23) This example uses the $43,000 house.

• As you can see, with what we are proposing, over five years, the

taxpayer of this house will pay a total of $500.44.

• increasing the Opt Out to $500,000 and no Overlap, that same

home owner would be paying $543.85 in those 5 years. However, this does not get us to our goal, and puts our budget a $1M in debt

• Increasing the Opt Out to $600,000 and no Overlap, that same

home owner would be paying $652.90 over those same 5 years. However, again, this does not get us to our goal and puts us a half million in the red. (Slide 24) Please take out Handout #3 – Ag land (medium dirt) Again, you can figure out the increase by taking the taxes of 147.78 x 1.333 = $196.99 for the new opt out taxes, which represents 41 cents more per acre (120 acres). (Slide 25) This example uses ag land with good dirt

• As you can see, what we are proposing, over five years the ag
• wner of 120 acres will pay a total of $1,132.73.
• Increasing the Opt Out to $500,000 and no Overlap, that same

land owner would be paying $1,231.00 over the five years. However, this does not get us to our goal—we’re $1M in debt

• With a $600,000 Opt out and no Overlap, that same land owner

would pay a total of $1,477.80 over the five years. Again, we could not make it five years. (Slide 26) Now let’s look at commercial property. Look at Handout #4.

• Again, you can figure the increase to this commercial property,

valued at $66,000, but taking the current tax of $195.60 x 1.333 = $260.73 in proposed Opt Out taxes. (Slide 27) Let’s see how the proposed Opt Out compares to larger opt outs with no overlap.

• A business owner’s property valued at $66,000 with the new

Opt Out, including the Overlap, will pay $1,499.25 over the five years.

• Increasing the Opt Out to $500,000 with no Overlap, that same

business person would be paying $1,629.35 over those five

• years. However, we would not make it to school year 22.
• Again, increasing the Opt Out to $600,000 with no Overlap, that

same business person would be paying $1,956.00 over those five

• years. However, this would not work either as we would still be

in the hole with our budget. (Slide 28) Remember, we wanted to go five years to see what the Legislature does.

• Without an overlap in the Opt out, the amount of the Opt Out

would have needed to be $800,000 to reach that goal and have the budget stay in the black. (Slide 29) Let’s look at an $800,000 Opt Out and how it would impact taxes. Our $43,000 house with the $400K Opt Out with Overlap that we are proposing, will cost the taxpayer a total of $500.44 for the length of the Opt Out – five years. With an $8ooK Opt Out and No Overlap, the increase is over 2.5 times the current tax. That taxpayer would pay a total of $870.30 for the length of that Opt Out, and increase of $369.86 to that taxpayer. (Slide 30) Let’s look at that same scenario with our Ag land: Under our proposal, the landowner will pay $1132.73 over the five years. In an $800K Opt Out, that taxpayer would pay $1,969.90 over those same five years. A difference of over $830. (Slide 31) Our business owners would also feel a big impact. With our proposed Opt Out, a business owner will pay $1,499.25

• ver the five years, including the overlap. With an $800 K Opt

Out, that business owner would pay $2,607.35 over five years, an increase of $1,108.10. I hope that we’ve showed you our thinking in choosing the $400,000 Opt Out with the Overlap—in the long run, it saves the taxpayers money over other scenarios without an overlap.

SPEAKER: Lynn Slides 32-36 (Slide 32) Let’s talk a little about the election

• The resolution was referred, so there will be an election on

Tuesday, May 2

• Polls will be open in Tripp and Delmont from 7 a.m. to 7 p.m.
• You must be a registered voter in the TD School District and live

in the district to be able to vote in this election (Slide 33)

• Absentee ballots and applications are available in our Business

Manager’s office. Stop by on school days between 7:30 – 3:30.

• Remember, you need a photo ID to vote – either at a polling

place or absentee

• If you are not registered, you cannot vote

(Slide 34) Our final word on voting is, you want your voice to count -- so VOTE! (Slide 35) You’ve heard our information, please use the cards and put your questions in writing.

• We would appreciate your name, so we can get back to you if

we need to give you more information

• Hand your questions to the runners-write only new questions,

please [Question time] GAIL (Slide 36) Vote on the Facts- We want you to vote YES or NO based on the facts. We have tried to present to you our rationale, the impact of the new Opt Out through facts and information presented via this presentation and through the questions answered on the Q + A handout. If you have tax questions, we strongly suggest you use our information as a guide. If you need more specific information, please talk to your County Assessor. (Slide 37) Thank you for coming tonight-Please Vote May 2