This brief is adapted from notes taken by Documenter Jason D’Angelo, who covered the Metropolitan School District of Wayne Township school board meeting. 📝 Read more about what happened.
Wayne Township schools are bracing for changes as they prepare for less tax dollars with Senate Bill 1.
School Services Project Manager Jane Herndon explained during the July school board meeting that the changes to state property taxes would result in Wayne having less funding.
The bill would increase tax breaks for property owners through deductions, meaning less money for schools. As Herndon put it, “The pie is shrinking.”
Schools receive funding through property taxes. The value of homes and businesses and the tax rate determine the amount of public funds the township would receive.
Herndon said, “All tax rates are going up—county, city, schools—across the state, we are seeing tax rates increase.” Usually, when the tax rate or property value increases, schools receive more funding. She continued, “We’re used to thinking about ‘tax rates go up, revenue goes up.’ We have to decouple that concept for a while when we talk about Senate Bill 1.”
Herndon presented the ways that the bill reduces the net assessed value over the next six years.
- The bill gives homeowners bigger tax breaks. Instead of being taxed on the full value of a home, they will only be taxed on one-third of the home’s value.
- There is a new credit, too. Each homeowner will receive a $300 or 10% credit, whichever is less. So for a $300,000 home, $3,000 would be owed. With this bill, an owner will owe $2,700.
- Other properties that didn’t previously receive tax breaks, like apartment buildings, nursing homes, and farms, will start getting them. Over the next six years, those properties will grow to be taxed at only two-thirds of their assessed value.Given these changes, Herndon prepared projections to help the board determine the best approach to managing the financial landscape over the next six to 12 years.
Given these changes, Herndon prepared projections to help the board determine the best approach to managing the financial landscape over the next six to 12 years.
What’s next?
The next board meeting of the Metropolitan School District of Wayne Township is at 6:30 p.m. on August 11 at 1220 South High School Road.
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