Published February 15, 2011, 08:09 AM

Corsica board OKs $150,000 opt-out of tax freeze

CORSICA — Despite the uncertainty of how the Legislature will handle proposed state budget cuts, Corsica School Board members approved a five-year, $150,000 annual opt-out of the state property tax freeze Monday.
The new opt-out, which will be in effect until taxes payable in 2016, will replace a $100,000 one that expires in July after being in place for five years.

By: Melanie Brandert, The Daily Republic

CORSICA — Despite the uncertainty of how the Legislature will handle proposed state budget cuts, Corsica School Board members approved a five-year, $150,000 annual opt-out of the state property tax freeze Monday.

The new opt-out, which will be in effect until taxes payable in 2016, will replace a $100,000 one that expires in July after being in place for five years.

School Board President Jeremy Wright said after the board meeting that it was the time for the board to vote on the opt-out, given upcoming teacher negotiations and contracts.

The district will use the additional amount above the first opt-out if it needs to, Wright said.

“It would be hard to wait any longer,” he said. “If the Legislature comes through and doesn’t cut, then we won’t need to use it. We’ll give it right back to taxpayers.”

The Corsica School Board conducted a second public meeting Monday night before its regular meeting to discuss the renewal of its current optout.

The potential tax impact for a $100,000 homeowner is a $52 annual increase, Business Manager Merna Bye said. The owner of $100,000 in agricultural land would see a $34 increase each year, with commercial property owners with the same valuation encountering $113 extra annually.

Corsica faces a potential cut of $70,000 to $80,000 with a state aid decrease and decline in enrollment.

The loss of current opt-out funds would tack another $100,000 to that range.

Superintendent Vern DeGeest said the district did not use the current opt-out the first year. He said school officials were looking at $150,000 to maintain district programs.

“If there is a decline in the state like the governor is talking about, we’d be going backwards,” he said.

Vice President Bob Bamberg said some schools in the area have as much as $200,000 annual opt-outs. He noted that staff reductions took place years ago that helped the district operate on a lean budget.

“It’s to the point now, what are you going to do?” he said. “I can’t understand the Legislature. I would think the first and foremost thing is your kids’ education.”

He and Wright noted that the state is now placing that burden on local districts to raise taxes.

Wright said the opt-out renewal would help the district substantially, but won’t cover every budget issue. He noted that a committee went to Stickney recently to talk about entering into more sharing opportunities.

DeGeest explained the two districts are considering whole grade sharing. For example, Corsica’s fifth- and sixth-graders could go to Stickney, while Stickney’s seventh- and eighth-graders would attend school in Corsica.

That would allow for some staff reduction, he said.

“That’s pretty new yet and I don’t know of anybody that’s doing it,” DeGeest said.

Nicole Bamberg, school board member, pointed out that neither district’s class sizes are big.

She said the committee discussed that students in kindergarten to possibly fourth grade shouldn’t be considered, because it’s too much of a transition for them.

If classes were combined, that would create a classroom of 16 to 26 students, Wright said.

He told school officials and board members that he has received a couple of calls from residents who said they don’t want to see their taxes rise, but they support the school district.

Bye said she would advertise the opt-out for two weeks, giving someone until March 14 to submit a petition with enough signatures to refer the resolution to a public vote.

The expiring opt-out was referred to a public vote in July 2006 and was approved.

If an election occurred and the opt-out was rejected, Wright said cuts would occur.

Cindy Zomer and her husband, Kevin, of Corsica, were the only two members of the public who attended Monday night’s meeting.

She said afterward that she supports the opt-out and thought that other people did in the community, given the low turnout at meetings.

“It needs to be done for our kids,” she said.

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