1st draft of Burrell School District budget proposes 4% tax increase

Burrell School District’s draft budget for next school year has a 4% real estate tax increase for property owners.

The draft budget totals close to $36.7 million, which is a 1.35% increase from this school year’s budget, said Jennifer Callahan, the district’s business manager.

There is a deficit of about $370,000, she said.

“We will continue to seek ways to reduce the deficit, including budget cuts, reallocations and/or additional revenue increases over the next few months in an attempt to present a balanced budget by June,” Callahan said.

The real estate tax increase included in proposal is 4.5 mills, from 111 to 115.5 mills, which equates to about a 4% increase, Callahan said.

The owner of a home with a median assessed value of $23,000 would pay almost $2,700 if the full tax hike goes through — an increase of $103.50 for the year.

For the current school year, the homestead exclusion amount is about $2,340. Callahan said the district doesn’t have data yet for 2024-25, but that “it is typically steady.” The exclusion is the amount of money deducted from a home’s assessed value before taxes are calculated. It applies to people who have owned their home for an extended period.

Callahan said there is no growth in overall district real estate assessment value over the current school year.

She said tax appeals from several large commercial properties resulted in decreased assessed values for them. The corresponding decrease in tax revenue amounted to more than $600,000 — equaling about 4 mills of taxes.

Callahan said major increases in the budget include special education services and student placement tuition, equating to a 14%, or $312,000, increase from this year.

The district has seen an increase in students with special needs this school year, as well as an increased cost of services, she said.

There also has been a substantial increase — from nine students in the 2022-23 school year to 18 students for next school year — in outside placements for special education, Callahan said.

“Increased needs of students educated in our schools has resulted in the need for additional classroom aides and support staff,” she said.

Other increases include 11%, or more that $325,000, for employee health insurance. Payroll and wage increases are up 0.8%, or close to $130,000.

The district also will see a nearly $885,000 decrease in federal money due to the end of federal Elementary and Secondary School Emergency Relief (ESSER) funding, Callahan said. The program was part of a covid relief package designed to help schools through the pandemic. It expires Sept. 30, meaning the current school year is the last in which the money is available.

Burrell, like other districts, used ESSER money over the past three years to help offset the increased academic, social and emotional needs of students.

The school board will consider approving the final budget at its meeting June 18.