Franklin Regional school board will not exceed state tax index in 2018-19
Franklin Regional officials may be on the cusp of building a $54 million elementary campus, but if they decide to raise taxes next school year, it will not go beyond the state's predetermined limit.
The school board this week pledged not to raise taxes beyond the state-set Act I index. For the 2018-19 year, that is 2.4 percent, or 2.24 mills.
“They feel strongly that they'd like to limit any tax increase to the index,” financial services director Jon Perry said.
By passing the resolution, the board relinquishes the opportunity to request an exception to raise taxes beyond the Act I cap.
The district's debt service is projected to increase by about $300,000 next year, based on debt schedules and factoring in a second bond issue, according to information prepared by Perry. That second bond issue is part of the $54 million project to build a new elementary school on the Sloan campus.
Perry said the financial picture shows at least a small measure of relief for the district, with a projected $70,000 boost in state revenue as well as a $250,000 boost in local revenue based on an increase in assessed real estate values.
During the summer, the district hiked taxes by 2.63 mills as part of a $56.5 million 2017-18 budget.