Kentwood — Voters on May 6 will consider a non-homestead operating millage proposal that would ensure the district can levy the full 18 mills allowed on non-homestead properties.
Approval would authorize a 3.9295-mill cushion to allow the district to continue to levy the full millage in the event of a Headlee rollback, which occurs when a local government’s millage rate must be reduced because the assessed value of existing property increases faster than the rate of inflation.
If approved, the district expects to collect approximately $26 million in 2025 from the full 18-mill levy. The millage will be in effect for five years, from 2025 to 2029. Funds are used in a variety of ways: classroom supplies, technology, teacher salaries, staffing, student programs, athletics, transportation and building maintenance.
“The non-homestead millage is critical to Kentwood Public Schools’ ability to receive its full per-pupil foundation allowance from the state,” said Tom Lagone, KPS executive director of finance and business operations. “If the millage falls below 18 mills, the state does not make up the difference, resulting in a direct loss to the district’s operating budget.
“This could significantly impact our ability to fund essential services such as teacher salaries, classroom instruction, transportation, and student programming.”
Michigan law requires schools to collect an 18-mill tax on non-homestead properties, those that are not primary residences. Non-homestead property owners pay $18 for every $1,000 of taxable value.
But the Headlee Amendment rolls back the millage rate if property values rise faster than inflation, so the Headlee override allows districts to ask voters to consider a small additional millage to restore the rate back to 18 mills.
It’s a likely scenario in the district, Lagone said, considering growing property values.
He added, “Without the 3.9295 mill cushion, the district risks not having the authority to restore any millage lost through this rollback process — resulting in less revenue to support student programs, staffing and essential day-to-day services.”
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