For the 18^th straight year, the School Board of Alachua County has approved a school tax rate that is lower than the previous year.

Following a public hearing, the Board unanimously approved a new millage rate and a new budget for the 2007-08 fiscal year. This year’s total tax rate for schools is 8.395 mills (a mill equals one dollar for every $1000 of the assessed value of a property), a drop from last year’s rate of 8.571 mills.

However, it’s likely that local homeowners will still end up paying slightly more in school taxes this year because of an increase in the assessed value of their property, over which the School Board has no control. For example, if a taxpayer’s home were to be assessed at the same value this year as last year, that taxpayer will pay less. If, however, the property’s value has increased (this year the maximum increase allowed by the state is 2.5%), they may pay more in school taxes, depending on the amount of the increase.

During the hearing, district officials also reminded the public that by far the largest portion of the school district’s millage rate is actually set by the Florida Legislature, not the School Board. Each year lawmakers in Tallahassee establish what is called the Required Local Effort (RLE) for each school district. This year’s RLE for Alachua County was set at 4.977, which is about 60% of a local property owner’s school tax bill.

“In Florida school districts must levy the amount established by the legislature or lose their state funding,” said Keith Birkett, assistant superintendent for budget and finance. “In Alachua County, that would mean a loss of nearly $95 million, or about two-thirds of our total revenues.”

About $3.9 million dollars has been set aside in the district’s budget in anticipation of a statewide holdback—that is, the state holding back funds that were originally intended to go to schools. Because of Florida’s looming fiscal crisis, caused primarily by a slumping housing market, state officials are instructing all state agencies, including school systems, to be prepared for a  holdback. 

Proposed changes to the state’s property tax system are also likely to affect the district. Those changes, which will go before the state’s voters in January, would change the way properties are assessed and taxed, which could mean fewer dollars available for public education throughout Florida. 

“We’re monitoring the situation in Tallahassee very closely and developing strategies for dealing with a potential budget shortfall,” said Superintendent Dan Boyd. “As much as possible, we’re looking at strategies that will limit the impact of any cuts on our classrooms.”