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Voters reject HAS sinking fund millage

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Written by Amy Mayhew
Wednesday, August 08 2012

Area voters rejected the HAS s...

HOLLY, Michigan – Holly Area School board members have a big decision to make on Aug. 20 after voters overwhelmingly rejected the sinking fund millage proposal as presented on the Aug. 7 primary election ballot.

A sinking fund millage is a limited property tax, and considered to be a “pay-as-you-go” method for addressing building remodeling project. Per state law, a district may levy up to 5 mills for no longer than 20 years. Additionally, the state has legal requirements, restrictions and guidelines for public school districts that plan to fund capital enhancements or facility repairs through sinking fund millage levies. Specifically, sinking fund monies could only be used to subsidize HAS facility repairs and maintenance, allowing the district to use what money would normally be spent on building and facility maintenance on a wide variety of programs and classes for students instead.

“I’m somewhat surprised that voters turned down the sinking fund,” HAS Superintendent Kent Barnes said. “Going forward, the board is going to have a big decision to make.”


Barnes said board members will have three options from which to choose including to put it back on the November ballot for another vote, putting it on a ballot in the next calendar year, or waiting until 2014 to put it before the voters again.

Kent Barnes, Superintendent fo...


“The board has until Aug. 28 to get it on the November ballot,” Barnes said. “If they went with the second option – that is putting it on a ballot in the next calendar year – the district would incur the election cost because there is no election scheduled for the next year.”

If no action is taken, Barnes said school programs could be put into jeopardy.

“If indeed something egregious should happen, then the board would have to review some of the school programs to determine which ones could be reduced or eliminated to offset the cost of maintaining our facilities,” Barnes said. “If a boiler goes in the winter or something like that, we’ll have no other choice – you have to have heat, and the money simply isn’t in the general fund to cover it – something will have to go.”

Barnes said projected maintenance costs to the HAS facilities over the next 10 years amount to more than $20 million.

Members of the Holly Area Schools Board of Education will discuss the matter at their upcoming Aug. 20 meeting at Holly Middle School, 920 Baird St., Holly. The meeting is at 7 p.m. and is open to the public.


Comments   

 
#1 Janet Leslie 2012-08-08 13:34
There is nothing more important to property values and quality of life than a strong school system. I hope HAS tries again in November.
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#2 meanmom49 2012-08-08 18:46
Part of the problem was what was covered in the fund. Most people could see funding roofs, floors, security cameras, but new playground equipment (Rose Pioneer had newer equip.) The Middle school could also share the track, etc with the High School. Perhaps changing some of the things covered in the fund could help to get this passed.
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#3 Sophia 2012-08-08 20:30
Kent Barnes doesn't live in the real world. Most Holly area people don't make the income that he and his wife does. People have lost jobs, taken pay cuts, are paying $4 for gas, grocery store prices rising and other daily exprenses. The school needs to learn to budget better. Maybe selling the middle school would be an option. There are still residents that don't approve of closing the middle school. There are also unsatisfied parents of non A students that aren't pleased with the education the children are getting. That is why the charter school and home schooling is a better option.
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#4 TheDuke 2012-08-08 20:54
I wonder what will get cut the next time that something breaks down, roof leaks, etc.? Band? Sports? Buses? Art? Choir? I guess that we will just have to see what happens. I know that voting this down will not help the property values anywhere in the district.

According to Mr. Barnes, there are legal constraints on what the fund can be used for. Mostly repairing the schools.
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#5 Joe 2012-08-08 22:30
I'm really ashamed that our community rejected this with such a margin. I don't even have kids in HAS but understand the importance of making the school system a priority.

I find it impossible to believe that someone can't budget $10-$15 over the course of a year. You can do it, it's just not a priority for you.

To me, it's the equivalent of watching someone use their Bridge Card at the grocery checkout and then paying cash for their beer and cigarettes while talking on their smartphone with a $40/month data plan.

The next time my 2,815 neighbors that voted this down are wasting money at the local fast food drive thru or watching their cable TV, I hope you feel good about yourselves.
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#6 Jason M Hughes 2012-08-09 08:11
I completely disagree with your assessment of Mr. Barnes, Sophia. I have attended many Board of Education meetings as well as spoken with Mr. Barnes face to face and he doesn't make these recommendations lightly. Painting a picture of him as a rich bureaucrat that has no compassion for the current economic struggles of the community couldn't be further from the truth. Do you think he doesn't see the effects of inflation and gas prices in his own home, let alone in the schools expenses (gas for bussing, energy expenses, increase in food costs, etc)? Holly isn't unique to these budget struggles. That being the case don't you think the problem has more to do with the funding structure and state mandates for public schools or do you really believe that so many school districts in Michigan have Superintendents that don't "live in the real world"?
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#7 neighbor 2012-08-09 09:29
Joe as a parent of an only child, I just want to THANK YOU for taking the time to support our kids and our community. So often if people do not have kids in public schools they feel it doesn't affect me so I don't care. Mean Mom, if you did your homework you would realize why additional playground equipment was on the consideration list (yes that is what the list is-a list of things that needed to be prioritized but still were within the options the law allows a sinking fund to be used for). There are new requirements for physical education placed on public schools across the country, and specific new playground equipment would fulfill those requirements more economically then indoor equipment would. Mr. Barnes and the HAS team have made some very wise economical changes and improvements over the past few years saving the tax payers money-and in some of the repairs/replacements they have even come out even and or ahead because of the incentives out there for updating to more eco friendly methods. Mr. Barnes and whoever your replacement will be next year, please stay strong on the decision not to sell the middle school. As someone involved in higher education I can honestly say the kool-aide drinkers will do themselves and their children a favor by exposing their kids to the real world prior to college. This will come as a shock to many I know but not everyone makes the team, and you need to know how to get along with others that are different from you.
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#8 circus011574 2012-08-09 12:21
Joe, it's none of your business what other people spend their money on. Even though I agree that if people can afford beer and cigarettes maybe they may not need a bridge card, but it isn't their fault, it's the government's fault for giving our money to them in the first place.

The per-pupil money spent on public education is at an all-time high. In 2008 dollars, we spent $2,808/pupil in 1962 and $10,441/pupil in 2008(nces.ed.gov). So how can the problem be there isn't enough money? Where is all the money going? One observation, Maybe we shouldn't be buying all the kids breakfast everyday. It's the parents' responsibility to feed their kids, not the schools'.
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#9 Ryan Bladzik 2012-08-09 15:27
circus, your statistics may apply nationwide, but let's take this a little more close to home.

Holly is among the largest school districts in geographic area in the state. How much has the cost of fuel gone up in the past decade?

In Michigan, FY12, the foundation allowance from the State was ~$6800, a loss of $470 from FY11. However, there was no increase in FY11 and FY10, and after 2003, the rate of inflation outpaced increases to the foundation allowance, meaning schools have had to pay for more with less.

Also, given that the foundation allowance is based on a district's headcount, and Holly has lost a number of students to alternative educational options and departures due to economic conditions, they're losing even more money. Due to Proposal A, districts cannot assess additional millages to fund salaries or benefits for faculty and staff. The sinking fund likewise can only be used for specific projects--without it that money comes from academic-allocated dollars.

Retirement benefits have taken a toll on not only school districts but businesses and government as well.

Holly has more than 50% of its students qualifying for free or reduced lunch, which is paid for through federal funding, not property taxes or local dollars. To blame our financial difficulties on a stack of waffles is absurd.
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#10 LisaKay 2012-08-09 16:26
Just get it back on the ballet for November. More people will be out to vote then, and hopefully it will pass.
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#11 Joe 2012-08-09 19:00
@circus- Please let me know what the school technology budget was in 1962.
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#12 circus011574 2012-08-10 10:13
Ryan, of course I’m not blaming the problems on a stack of waffles, it is absurd to suggest as much. That was just one small area that is easily observable where money is wasted. I don’t care where the money comes from, state, local, federal, whatever, it’s still OUR money, ALL of it. Our politicians want to buy votes by giving out freebies (this year the school is even giving out free lunches all summer) instead of fixing the deeper problems.

I will concede that many problems can be fixed by just throwing money at them, but at some point there just isn’t any more money. The public sector needs to learn how to do more (or the same) with less just like everyone in the private sector has done.

As far as retirement commitments, you’re right, that is a huge financial burden. I fully believe that retirement benefits need to be shifted from defined benefit to defined contribution. Retirement benefits have bankrupted many municipalities and it isn’t fair to the tax payers who pay those salaries and benefits. It’s also not fair to the employees that were promised certain benefits that were never going to be sustainable over the long-run.
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#13 circus011574 2012-08-10 10:14
Joe, ok, not much technology spend in 1962. Let’s look at 1987 (I was in Sherman Middle School at the time and they had plenty of computers) when the average spend was $7,105/pupil (adjusted for inflation to match 2008 dollars). So from 1987 to 2008 the average spend increased by 47% (remember, that’s 47% AFTER adjusting for inflation!). Over that same time period (again, adjusted for inflation) the cost of a PC as decreased by about 2/3.

Apparently most of the readers here disagree but I do not believe shoveling more money into the system is the way to fix the real root-cause problems.
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#14 Ryan Bladzik 2012-08-10 17:12
Considering kids that receive proper nutrition do much better academically than kids who are hungry, I don't see much of a problem with feeding kids...especially in a district where 7% of kids live under the poverty line and more than 50% qualify for free or reduced lunch due to low family incomes.
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#15 TheDuke 2012-08-11 14:48
Circus, there are four board of education seats up for election this year. Will you be running to "fix the real root-cause problems"? Have you ever presented the board of education with all of your wonderful ideas to fix roofs, parking lots, boilers, buildings, floors, windows, etc. Those are they types of things that a Sinking Fund can be used for, nothing else, not technology, salaries, benefits, etc. I am sure that the board would like to hear how you will get these things done without spending any money on them. Maybe I miss understood your position, are you advocating cutting teachers, educational programs, busing, etc.?
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#16 Janet Leslie 2012-08-11 15:23
Circus, it may be "our money," but much of it is allocated for certain purposes, based on where it comes from. The federal grant that pays for the summer lunch program cannot be reprogrammed to pay for a leaky roof. As Mr. Barnes has explained, even if the sinking fund passes on a second try, due to declining property values statewide, our schools will still be working with a smaller amount of money than we had just a few years ago. Holly Area Schools is already doing more with less.
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#17 iroquois 2012-08-13 13:23
No means No. Do not try again, the money spent on improving and maintaining
sherman middle school only to close shortly after, is proof Holly area schools have no clue what they are doing. Just more more more
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#18 Legalette 2012-08-14 10:04
While quality of life and a strong school system is important to property values, foreclosures are more devastating to surrounding property values. Right now people are struggling to make mortgage payments and fix their own roofs - and pay the water bill. I am not opposed to the sinking fund, I am just opposed to it at this time while I am trying to keep food on my table.
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