What will it cost to invest in our schools now?
School districts rely on voter-approved measures to fund major school construction. The state does not provide funding for the bulk of construction costs, and our fast-growing district needs to continue to build classroom space to meet our students’ and community’s needs. The state changes made under the McCleary ruling do not provide any additional state funds for construction. We need community support to ensure our students have room to learn in safe schools.
If the April 23 capital projects levy is approved, homeowners would pay the same school district tax rate for capital construction with no increase. The current rate for construction is $1.15 per $1,000 of assessed valuation (AV) and that would remain the same.
How does this work?
Thanks to smart financing, the district is paying off past bonds so that rate will decrease. The new capital levy rate will be an average of $0.27 per $1,000 of assessed value over the six-year cycle. (see the green bar/proposed levy rate in the chart below). This maintains the overall current education tax rate for our community.
Get all the financial facts at https://www.lwsd.org/2019-capital-projects-levy
How to levies work?
While a school bond is financed up front and paid off over 20 years, a levy collects funds every year for a fixed time, in this case, six years. The school district will only collect the specific dollar amount approved by voters. This amount – $$20 million per year for six years – is fixed and shared by all local taxpayers based on the value of property. As the value of a person’s home or property increases, the tax rate decreases. And the more homes built in our area means more homeowners share the cost of our schools, thus decreasing the tax rate.
Want to learn more about the levy and district’s finances? Visit their levy page at https://www.lwsd.org/2019-capital-projects-levy
You can also learn more about how local levies are collected, in this video: https://www.youtube.com/watch?v=uUqKJG7-c1E