News : State school funding decision allows VS board to reduce tax levy

The Vinton-Shellsburg school board met for a special board meeting this morning at 7:00 AM.

The only item on the agenda was to discuss and take action on the implications of the legislature’s decisions on school funding.

When the board originally set the levy rates in the spring, the legislature had not set their level of funding support for the 2013-14 year. Consequently, the school board had to use a worst-case scenario and plan for no increase.

Under that scenario, the district would have received less funding from the state next year as this year due to declining enrollment and would need to use local property tax dollars under the budget guarantee.

In April, the school board and administration agreed to set the cash reserve levy around $335,000 to cover the budget guarantee plus other cash-flow needs.

However, now that the legislature approved 2% allowable growth, the board was able to lower the cash reserve levy to $185,000. This change, combined with other funding changes, allowed the board to lower the general fund tax rate about 80-cents per thousand.

The changes allow the overall tax rate to remain stable from the 2012-13 year to the 2013-14 year and around $15.54 per thousand.