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Mar-07
26

Spending By School District Which is Funded by New Richmond Residents to Increase 89%

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nrtiger.thumbnail Spending By School District Which is Funded by New Richmond Residents to Increase 89%According the budget presented at the District September 2006 Annual Meeting, the New Richmond School District levy raises $8,840,155 million from the property taxpayers of the District. This comes from the school district portion of your property tax bill.

The remainder of the District budget of $23,822,305 million comes from the State of WI. This includes $14.6 million in revenue sharing and some other miscellaneous items. We pay for this through our state income taxes, sales taxes and the numerous other state taxes here in Cheeseland.

The School District portion of your local property tax bill is the largest item of your property taxes. Also included in the bill is a portion for the County, the tech colleges and the local community. In New Richmond’s case it comprises more than 60% of your property tax bill.

The proposed $92.8 million referendum will require the New Richmond School District to borrow $92.8 million We are told the terms of this will be for 20 years at 5.5% interest. 20 years at 5.5% interest will require the District to pay $7,708,249.06 per year on the loan for this money. The entire $7.7 million must come from New Richmond property taxpayers. No portion of this can come from the State.

Let’s review. This year the District raises $8.8 million from New Richmond taxpayers. The borrowing payments for the referendum would be $7.7 million per year. So at a minimum, next year, the District will have to raise $16,548,404 from New Richmond property taxpayers. This is an 89% increase in spending the District will have to raise from local New Richmond property taxpayers.

Think your property taxes will just go up a couple hundred dollars like Mr. Veilluex suggests?

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Comments

  1. BobZiller says:

    You forget that the NR district won’t borrow all the $92.8 million in one gulp. They will borrow the money as needed during the design and building phase. This will occur over four years. Once the full borrowing is in place, you are right.

  2. Chris says:

    So, what your saying is that it will more than DOUBLE at a minimum in 4 years.

  3. Luke says:

    Watch it Chris, before Bob says you’re OFF TOPIC! Just don’t ask him how he’s going to vote in the referendum.

  4. BobZiller says:

    Yes, Chris, it will double by 2016 which includes the 3.0%/yr budget increase. With automatic increases using the QEO which pushes labor costs up to 4.2%/yr, this puts a strain on the school board to raise budget revenue to the full limit of 3.0% unless programs and staff are cut.

    If there is no growth in construction and enrollment, the mill rate will be 2.5 times what it is today.

  5. Chris says:

    Bob, It looks as if the local New Richmond socialist has the exact comeback as I want. So I’ll quote him from the New Richmond News(Link).

    I do believe it’s time for this debate to end. I know that my property taxes will at a minimum double in 4 years. (Not really, this referendum doesn’t stand a chance). Also, the labor part of the operating budget will increase by at least 66% by 2016, at the bare minimum using the minimal QEO rate, even if there is no staff added over existing staff right now. But you and I both know the schools will add unionized staff. There will be aids, psychologists, consolers, teacher aids, coaches, mycologists, sexcologists, gaycologists, daycare professionals, in addition to administrators and teachers. Without knowing exactly how many this will be, it is hard to say how much the labor prices will increase, but let’s just say it will be exponential. To be accurate, the total budget increase will be way over the 4.2% QEO contracts. I don’t know what the New Richmond figure exactly will be, but when you start adding it up, and I will use an extremely low rate for TOTAL annual budget increases at 8%, I would expect around triple of what today’s level is. If you can’t hold the total budget increases to 8%, you are going to feel it. One can only hope there are only modest increases in both health care and pension liability. If so, by 2016, expect your property taxes to triple at a minimum. If health care and pension liability increase, that my friend will mean it’s time to move. That’s if you can sell your house.
    James N
    03/27/2007 4:54 PM

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