Referendum passage will help lower taxes, keep Gilman Schools financially sound

It’s a situation many school districts find themselves in – asking voters to grant permission to exceed the set revenue limit – and Gilman is no exception. The district is asking voters to approve exceeding the revenue limit Tuesday, April 5, for a four-year, non-recurring referendum for educational programming, expenditures and operations.

During the last referendum four years ago, the district leaders knew it wouldn’t be the last referendum for the school district.

“But, we wanted to do it in a way that we could strategically place the district in a good position…” said district administrator Wally Leipart. With a referendum every fours years, the district can keep on schedule with the state biennium budget, which means the district will be able to budget ahead of time.

“It also allows us to be responsive to our current needs,” said Leipart.

Schools have no recourse but to turn to taxpayers for help, as state-established revenue limits have not kept up with rising costs of instructional services and fixed expenses. The referendum allows the district to support educational programming, such as elementary academic support, while enhancing agriculture, science and vocational (shop) classes. It also supports long-range expenditures of flooring repair and replacement, art, special education and office area roof replacements, and kitchen appliances for school breakfast and lunch.

“It’s always an issue of how much money you’re receiving from state aid… we know going into this year, we’re asking for $2.7 million,” said Leipart. “Our strategy is to stay below $2.9 million.”

Currently, the district’s mill rate is $10.65, per $1,000 of property. With the referendum, it is estimated to drop to $10.12 during the 2022-23 school year; $9.70 for 2023-24; $10.21 for 2024-25; and $10.34 for 2025-26. Taxpayers are asked to vote to exceed Gilman’s revenue limit by $700,000 for the first year of the referendum (2022-23 school year); $800,000 for the second year; and $900,000 for years three and four.

Although Gilman is setting a $2.7 million levy the first year of the referendum, the next year would be a $2.6 levy, even with the referendum amount up in cost the next year. Leipart said it might not make sense, but the formula works.

“I’m very encouraged that we have a plan that meets the needs of our district,” said Leipart.

In addition to reducing expenditures where they can, the district also received $1.5 from federally allocated ESSER funds, but that cannot be used for general operations. Instead, the money was used to make changes to the HVAC system, which is now set up for decades. By using the federal money for needed things, the district can then roll the savings of what they would have spent on the upgrades, and place it in Fund 46 for capital expenditures for the roof and electrical issues.

“Instead of using it (ESSER) for three years, we’ll be able to use it over 10 years, by doing that,” said Leipart. “We’re really excited that we have a plan that sets up the district for a long-term sustainable facility.”

Leipart admits that Gilman does have declining enrollment – as do many rural districts – but says at the same time, Gilman is able to do some things other districts can’t. Because of the size of the school, Gilman didn’t have to close down because of COVID, so the staff and students could be spread out, and the district can work on projects to benefit the community.

“It really is that simple,” said Leipart. “We have a referendum that meets the needs of the district, but reduces your property taxes, as crazy as that sounds.”