School General Fund Levy
Greetings Columbus School District Shareholders,
First and foremost, thank you for your support of the Columbus School District. Your generous support offers our students an outstanding education, as well as a beautiful and positive learning environment. We cannot thank you enough for investing in our students and their futures! In addition, thank you for supporting our amazing staff as they work extremely hard.
As you may have seen, there was a recent article in the Stillwater County News regarding the educational needs at the schools and a general fund levy election. Currently, the school is not at the maximum budget that is allowed under the law and this levy would help get the district closer to or at the maximum budget. The Trustees plan to approve the levy amount at the March 11 meeting. The levy will need voter consideration this spring.
This newsletter is to provide you with more detailed information regarding the general fund levy, reasons for the levy, how the general fund is funded, how tax impacts are determined, and other specific funds and their purposes.
What is the school General Fund?
The general fund is the school’s largest fund, mostly used to pay for the basic costs of operating a school district. The fund covers a wide variety of expenses, including, but not limited to: teacher salaries and benefits, school safety, school supplies, curriculum, technology, student activities, utilities, and maintenance costs. The revenue generated from the levy would be used to fund the programs and services that the state and other sources don't fully fund.
How is the General Fund budget determined for schools?
The general fund budget for each school district is specific to the school’s enrollment. In Columbus, we have an Elementary District (K-8) and a High School District (9-12). Each year, schools have student count dates (October and February) and that average (Average Number Belonging) is used in the state formula to determine the school’s budget.
The general fund levy topic was an agenda item at the January 14th school board meeting with a lengthy and in-depth discussion focused on the needs for a levy. A significant reason for pursuing a general fund levy would be to address the staffing shortage the district is facing at the middle school, as well as a shortage in intervention services provided to students who are below grade level in their academics. We want to make it clear that the levy is to specifically address academic needs and NOT athletics. It has been discussed that two additional teachers would fulfill the shortage we are facing. This levy would also allow additional services for students who require more intensive support such as one on one aides. Adequate staff would help foster a supportive academic environment that would enhance student achievement. Additional staff would result in smaller, more manageable class sizes, which would provide more individual attention to the students. Large class loads can easily contribute to decreased student engagement, which can lead to behavioral issues and lower student achievement. Also, smaller class sizes could reduce teacher burnout.
Another important reason for the levy would be to enhance our educational programs with updated curriculum and updated technology. It is evident and determined that we have outdated and obsolete curriculum in areas throughout the district, which we could replace to give our staff and students a curriculum that is current and better aligns with the state standards. In terms of technology, we have several devices that are outdated and obsolete. During Covid, schools received one-time funds that were used to purchase technology. Like many schools, Columbus Schools purchased technology with those funds. Almost 5 years later, the technology is becoming obsolete and needs to be replaced. In today’s world, technology plays a crucial role in education and our everyday lives. Technology provides students access to information, educational platforms, and allows students to gain 21st century skills necessary for future occupations. Teachers use it as a teaching tool, record keeping, and much more. A levy would help bring our devices up-to-date and would allow a rotation to ensure that our technology is as efficient as possible for the students and staff.
It is understood that asking for a levy may not be popular. The decision to run a levy was not an easy one. Asking voters to consider a levy would mean an increase in taxes if approved. Tax increases depend on several factors including your property type and the value of your property. Looking at the history of levies at Columbus Schools, it reveals that the district has rarely asked the taxpayers for levies, and when they do, it is for very good reasons. The school district has been fiscally responsible with the funds provided through taxes and will continue to do just that.
School budgets can be difficult to understand as each budget has its own specific purpose and spending limits. It may be misleading to see a beautiful campus with amazing facilities, which could give the impression that the school does not need additional funding. The curb appeal appears the school is doing fine financially, but it is important to understand the school was built with funds through a school bond that were specifically for that purpose. We have an incredible fleet of route buses, which are all paid for out of a bus depreciation fund. It is no secret that the new Cougar activity bus stands out and could make one think that the school is not short on money. That bus was paid out of the bus depreciation fund, not the general fund. Other funds with specific purposes are the transportation fund, adult education fund, and the retirement fund to name a few. Money from those funds cannot be used for general fund expenditures. For example, we cannot use the transportation fund for funding additional teachers, purchasing curriculum, and purchasing technology. Those expenditures are specifically general fund expenditures. Another example would be the bus barn facility that the district is pursuing on the 40 acres near the hospital. The general fund would NOT be used to fund this project, but rather the transportation fund and other appropriate school funds would be utilized.
Taxable Valuation, Mills, and Tax Impacts
Every school district has a taxable valuation and it differs from year to year. The Department of Revenue assesses properties within the district and estimates the market value of all real estate that is subject to property taxes. Schools receive their taxable value typically the first week in August. The taxable value plays an important role in the mills required to operate the school.
The district’s taxable value determines the mill value. Taxable Value = Market Value x Tax Rate. Tax rate is a percentage of the market value that is taxable. In Montana, the residential tax rate is 1.35%. Currently, the taxable value for the Columbus High School District is $28,269,279 and the Columbus Elementary (includes the Middle School) is $29,743,020. To determine the value of a mill, you take the taxable value x 0.001. So, the mill value for the HS is $28,269.28 and the ELEM is $29,743.02.
For EXAMPLE, what would the tax impact be if we were to run a levy for $200,000 for the HS?
First, we need to determine how many mills it will take for a $200,000 levy. Our mill in the HS is worth $28,269.28. So, you would take the levy amount and divide by the mill value. $200,000/$28,269.28 = 7.07 mills.
How do you determine the taxable value of a home? If the market value of your home is $100,000, you would take that and multiply by the 1.35% (tax rate), which the taxable value would be $1350. To determine the mill value, you multiply $1350 x 0.001 and you get $1.35.
On a $100,000 home the mill value is $1.35. A $200,000 levy in the Columbus High School District is worth 7.07 mills. So, if the levy was for $200,000, the tax impact per year on a $100,000 home would be $1.35 x 7.07, which equals:
$9.54/year on a $100,000 home
$19.08/year on a $200,000 home
$28.62/year on a $300,000 home
$38.16/year on a $400,000 home
$47.70/year on a $500,000 home
$57.24/year on a $600,000 home
Q&A
Q: When does a school receive their General Fund budgets from the Montana Office of Public Instruction?
A: Schools receive their budgets for the following year by March 1st after the student count dates. However, during legislative years, those budgets could be adjusted and distributed later due to school funding bills in the legislature that are not signed into law.
Q: Is there a minimum budget that Trustees must adopt?
A: Yes. Schools are required under the law to adopt the minimum budget, or the BASE, which is 80% of the MAX budget.
Q: What funding sources make up the General Fund BASE budget?
A: The primary funding sources are property taxes (local permissive mills), guaranteed tax base, and a variety of state funding sources.
Q: What is the General Fund MAX Budget?
A: The MAX budget is the most the district can adopt per the law. To fund the MAX budget, district’s rely mostly on prior voted levies as well as current voted levies.
Q: Does the Columbus School District operate at the MAX budget?
A: No. The Columbus school district operates between the BASE and the MAX budget called the OVERBASE. Currently, both the elementary and high school districts are operating at 94% of the MAX budget.
Q: Currently, how much levy revenue would be needed to operate at the MAX budgets?
A: The elementary school district would require $238,866 and the high school $150,920.
Q: Do districts have to ask the voters for the amount needed to get to the MAX?
A: No, the amount can vary and can be a lower amount.
Q: When asking for a levy, does the school district have to request the entire amount to get to the MAX budget?
A: No, the amount can be lower and is determined by the Trustees.
Q: When is the regular school election and how does a person vote?
A: The regular school election is Tuesday, May 6, 2025. The election is a mail ballot ONLY so ballots will be mailed to each registered voter residing in the school district in April.
Q: Will there be any other school elections this spring besides the General Fund Levy election?
A: Yes. There are (2) 3-year Trustee positions available and (1) 1-year Trustee positions available.
In Closing
We hope that this information gives you a good understanding of the general fund levy and the educational needs at the school. Again, thank you for your support.
If you have any questions, please feel free to contact Supt. Casey Klasna at 406-322-5373. You could also pose your questions to the following email:
Thank you again for your support of Columbus Schools
