Goodrich – With school budget woes, business owners are being asked to boost district revenues. At a higher cost than previously thought.
On the May 3 ballot is a non-homestead millage renewal, in which Goodrich school officials will ask for an increase of 3 mills over the next four years, to be paid by owners of area businesses, rental properties, and second homes’essentially everyone except primary residents and farmers.
Previously, the millage renewal request was published as a 2-mill increase.
Critics of the district feel the misprint’which appeared in two weeks worth of school newsletters and the school Web site’was deliberate.
‘It absolutely, positively was not intentional,? said Goodrich Area Schools Superintendent Kim Hart, who says the mistake was simply a clerical error. ‘We would never deliberately mislead people, and we would have nothing to gain, since it affects business owners more than residents.
‘We’re sorry if it confused anybody, but we thank you for bringing it to our attention so we can clear it up.?
The millage renewal, which was proposed last fall as part of the school budget-reduction plan’s second phase, is urgent, Hart says.
‘We lost $90,000 last year, then it went to $133,000,? she said. ‘We can’t wait any longer.?
Article IX of the Headlee amendment’enacted in Michigan in 1978’states new or increased local taxes are prohibited without voter approval. Legally, the limit for non-homestead property taxes is 18 mills.
For each 1 mill levied, a property owner pays $1 in taxes for every $1,000 of the property’s taxable value.
When property values rise faster than the rate of inflation’which has been the case nearly every year’the tax is required to decrease, or be ‘rolled back? to compensate for disproportionately higher taxes.
Unless Goodrich voters decide May 3 to override the Headlee amendment.
‘We’ll allow voters to make that choice,? Hart said.
If it passes, the 3-mill increase won’t technically push taxes above the cap, but non-homestead property owners won’t be able to take advantage of the rollback effect of the Headlee amendment, since taxes won’t be allowed to edge below the 18-mill maximum.
It’s entirely legal, and commonly done in school districts in which voters approve their millages, says Hart.
‘That’s why it’s called a Headlee override, that’s the common name for it,? she said, citing districts like Davison, Swartz Creek, and Linden, in which school officials were also advised by attorneys to seek voter approval on the override.
Currently, the school district levies 17.0405 in non-homestead taxes, less than the original 18 mills voted in by district residents in 1999. Reduced mills negatively impact budget revenue, Hart says.
‘The state assumes we’re collecting that. (With rollbacks) we can’t get the full amount that people assume we’re getting.?
Combined with other budget-cutting measures the tax revenue, if approved, is expected to help offset the expected $840,000 to $1 million shortfall next year, Hart said.
Most area business owners willing to discuss the millage proposal expressed financial concerns beyond paying higher taxes.
‘Cranberries Caf? is a very strong supporter of the schools. I was a student, my children were students,? said Cranberries? owner Patty Plant, who appreciates the business Goodrich teachers give the restaurant.
‘I won’t change my stance, we’ll be a strong supporter of the schools, but on the other hand the school system needs to remember the businesses as supporters and in turn help support the businesses.?
Barb McClara, owner of Fantasyland Ceramics & Gifts in Goodrich, expressed other concerns.
‘If the 80 percent of business owners in this country started paying their fair share of the taxes, we wouldn’t have to raise anybody’s taxes,? she said.
‘I don’t mind the tax I have to pay, but I do mind somebody who’s taking in five times more in a day than I take in in a year not paying any tax.?
Quality schools are worth higher taxes, say some business owners.
‘If the schools are going to benefit from the money and we’re putting into it I see no problem with paying taxes for it, especially with as good of schools as we have here in Goodrich,? said Nick Moors, co-owner of Big Jake’s Pizza & Shakes in downtown Goodrich.
District officials rely on and appreciate community and business support, says Hart, who feels businesses ultimately benefit from supporting schools.
‘There’s an old saying, ‘It takes a village to raise a child.? It takes everybody,? said Hart. ‘I hope people realize education benefits not just their children, but everybody’s children, and an educated consumer is a better consumer.?