Notes
Slide Show
Outline
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Ypsilanti Public Schools
Proposal F Vote
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The Problem
The Headlee formula limits the total tax increase for an entire district to the rate of inflation.
It is triggered when property is sold and re-valued at a level much higher than the rate of inflation.
This causes the 18 mills to be rolled back (currently at 17.215 mills for Ypsilanti Public Schools).
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Example:
When a 100 acre parcel of vacant (non-homestead) land is sold for $1,000,000 it may then come onto the tax rolls as 85 individual building sites for a new subdivision valued at $40,000 each.
New taxable value: $3,400,000
This extra $2,400,000 of non-homestead property value (along with numerous other “similar” sales) triggers the “Headlee Rollback” of the 18 mills non-homestead millage.
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The Solution
To resolve this issue, many school districts are requesting more mills than are needed to override Headlee.
Districts are requesting authorization to levy 20 or 21 mills.
The state law prohibits Districts from levying more that 18 mills.
Headlee reduces the authorized millage rate, not the levied rate.
If a rollback occurs, it is applied to the 20 or 21 mills, not the 18 mills levied.
This means there is no impact on the 18 mills levy for a number of years.
This increase is rationalized by districts saying that it will eliminate the need to come back to voters again and again to ask for the same 18 mill levy.
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Passage of Proposal F
Projected
Sources of Revenue
for Per Pupil Foundation Allowance
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2008-09
Loss of Revenue to
Ypsilanti Public Schools
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Potential Long Term Impact
of Failure to Override Headlee
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Example Calculation
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